Component replenishment planning for a single-level assembly system under random lead times: A chance constrained programming approach

Valeria Borodin, Alexandre Dolgui, Faicel Hnaien and Nacima Labadie

International Journal of Production Economics, 2016, vol. 181, issue PA, 79-86

Abstract: In practice, production planning and inventory control, both managed in the assembly systems framework, are often subject to various sources of exogenous uncertainty. In this regard, the present paper focuses on a single-level multi-component inventory control problem for the assembly systems replenishment under stochastic component procurement lead times. In order to be closer to the common assumption of MRP software tools, the case of discrete distributions of component lead times is considered, these latter being thus expressed as a number of periods. Since the finished product is assembled by using several types of component at the same time, the assembly process is stopped even if only a type of component is delayed. The assembly stopping forced by a components delay or stock-out is penalised by backlogging costs. Hence, the problem objective aims to minimize the total cost composed of holding and backlog ones. To address this problem, a joint chance constrained model is proposed and solved via an equivalent linear reformulation, the special structure of which is also deeply discussed. Apart from the effectiveness of the provided equivalent linear reformulation, the practical advantage of the proposed approach resides in its release from backlogging costs, which are often difficult to be quantified in real-life industrial applications.

Keywords: Assembly systems; Random lead time; Inventory control; Joint chance constrained programming; p-efficient point; Mixed integer programming (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S092552731600061X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:181:y:2016:i:pa:p:79-86

DOI: 10.1016/j.ijpe.2016.02.017

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().