Approximation methods for the analysis of a multicomponent, multiproduct assemble-to-order system

Approximation methods for the analysis of a multicomponent, multiproduct assemble-to-order system

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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: , ,
Keywords: supply & supply chains, production: MRP, queues: applications, combinatorial optimization
Abstract:

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.

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