Using a novel stochastic programming (SP) formulation, we develop an algorithm for inventory control in industrial sized Assemble-To-Order (ATO) systems that has unparalleled efficiency and scalability. Applying our algorithm on several numerical examples, we generate new insights with respect to the control and optimization of these systems. We consider a continuous time model, seeking base-st...

In this paper we study an assemble-to-order environment involving a short-life-cycle product. The product is sold in two different configurations, each requiring a unique component that must be stocked in advance. Both configurations of the product are assembled on the same equipment which has limited capacity. We assume that the assembly capacity is allocated in such a way as to maximize profi...

In this paper, we consider demand management decisions for an assemble-to-order production system in which both the availability of intermediate material and assembly capacity are limited. For each incoming order, the manufacturer must decide whether to accept it and what due date to quote for an accepted order. The actual assembly dates are still subject to change after these decisions, and a ...

We consider an assemble-to-order (ATO) N-system, in which there are two components and two products. One product requires only component-1, while the other product requires both components. The components are kept in stock and are procured from outside suppliers with fixed leadtimes. The final products are assembled only after customer orders are realized. Using a hybrid approach that combines ...

Assemble-to-order refers to a supply chain strategy in which products are not assembled until customer order arrives. It is based on the so-called form postponement that is to hold components at a generic form and to delay the point of product differentiation. The performance of an assemble-to-order supply chain depends on two main dimensions, which are responsiveness and achievement level of s...

We study an assemble-to-order inventory system. The stocks are held for components, with final products assembled only when customer orders are realized. Customer orders form a multivariate compound Poisson process, component replenishment leadtimes are constant, and demands in excess of inventory on hand are backlogged. The component inventories are controlled by (R, nQ) policies. We show that...