An economic decision model for assemble to order supply chain product scheduling and inventory coordination

With the consideration of research progress and the characteristics of assemble to order supply chain, this paper proposes an integrating mathematical model for product planning and inventory optimizing, which consists of two submodels: strategic optimization model and operational optimization model. The strategic optimization model makes the decision for product planning with the objective of profits maximization. And the operational optimization model adjusts the cycle time throughout multi-stage chain under the constraint of product planning. Furthermore, we prove that the results of cooperation strategies of strategic optimization model satisfy the conditions of the core of coalition game so that its practice will enhance the stability of supply chain alliance.