Performance Analysis and Evaluation of Assemble-to-Order Systems with Stochastic Sequential Lead Times

Performance Analysis and Evaluation of Assemble-to-Order Systems with Stochastic Sequential Lead Times

We consider the multiproduct and multicomponent assemble-to-order (ATO) systems where the replenishment lead times of the components are stochastic, sequential, and independent of the system state. The component inventories are either controlled by the continuous-time base-stock policies, namely, a base-stock ATO system, or by the continuous-time batchordering policies, namely, a batch-ordering...

Performance Analysis and Optimization of Assemble-to-Order Systems with Random Lead Times

Asymptotically Optimal Inventory Control for Assemble-to-Order Systems with Identical Lead Times

Optimizing multi-product assemble-to-order (ATO) inventory systems is a long-standing difficult problem. We consider ATO systems with identical component lead times and a general ‘bill of materials’. We use a related two-stage stochastic program (SP) to set a lower bound on the average inventory cost and develop inventory control policies for the dynamic ATO system using this SP. We apply the f...

On the use of independent base-stock policies in assemble-to-order inventory systems with nonidentical lead times

We consider Independent Base-Stock (IBS) policies in Assemble-to-Order (ATO) inventory systems with a general bill of materials and deterministic nonidentical lead times. The main drawback of IBS policies in this setting is that they keep the inventory position of each component constant without considering the availability of other components with longer lead times. We show that the cost of th...

Order-Fulfillment Performance Measures in an Assemble-to-Order System with Stochastic Leadtimes

We study a multicomponent, multiproduct production and inventory system in which individual components are made to stock but final products are assembled to customer orders. Each component is produced by an independent production facility with finite capacity, and the component inventory is controlled by an independent base-stock policy. For any given base-stock policy, we derive the key perfor...