Order fill rate, leadtime variability, and advance demand information in an assemble-to-order system

Order fill rate, leadtime variability, and advance demand information in an assemble-to-order system

0.00 Avg rating0 Votes
Article ID: iaor20033110
Country: United States
Volume: 51
Issue: 2
Start Page Number: 292
End Page Number: 308
Publication Date: Mar 2003
Journal: Operations Research
Authors: , ,
Keywords: inventory, queues: applications
Abstract:

We study an assemble-to-order system with stochastic leadtimes for component replenishment. There are multiple product types, of which orders arrive at the system following batch Poisson processes. Base-stock policies are used to control component inventories. We analyze the system as a set of queues driven by a common, multiclass batch Poisson input, and derive the joint queue-length distribution. The result leads to simple, closed-form expressions of the first two moments, in particular the covariances, which capture the dependence structure of the system. Based on the joint distribution and the moments, we derive easy-to-compute approximations and bounds for the order fulfillment performance measures. We also examine the impact of demand and leadtime variability and investigate the value of advanced demand information.

Reviews

Required fields are marked *. Your email address will not be published.