Article ID: | iaor201112780 |
Volume: | 58 |
Issue: | 7 |
Start Page Number: | 685 |
End Page Number: | 704 |
Publication Date: | Oct 2011 |
Journal: | Naval Research Logistics (NRL) |
Authors: | Lee Chung-Yee, Fu Ke, Hsu Vernon N |
Keywords: | supply & supply chains, production: MRP, queues: applications, combinatorial optimization |
In this article, we consider the performance evaluation of a multicomponent, multiproduct assemble-to-order (ATO) system. Each component is managed independently using a base-stock policy at a supply facility with limited production capacity and an infinite buffer. The arrivals of demands follow a multivariate Poisson process and unfilled demands are backlogged. Because exact analysis of the proposed system is not feasible, we propose two approximation methods which provide upper and lower bounds for various performance measures such as fill rate, average waiting time, and average number of backorders of the proposed system. Our computational experiments demonstrate the effectiveness of the two approximation methods under various system settings.