Order-Fulfillment Performance Measures in an Assemble-to-Order System with Stochastic Leadtimes

Jing-Sheng Song, Susan H. Xu and Bin Liu
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Jing-Sheng Song: University of California, Irvine, California
Susan H. Xu: Penn State University, University Park, Pennsylvania
Bin Liu: Chinese Academy of Sciences, Beijing, China

Operations Research, 1999, vol. 47, issue 1, 131-149

Abstract: We study a multicomponent, multiproduct production and inventory system in which individual components are made to stock but final products are assembled to customer orders. Each component is produced by an independent production facility with finite capacity, and the component inventory is controlled by an independent base-stock policy. For any given base-stock policy, we derive the key performance measures, including the probability of fulfilling a customer order within any specified time window. Computational procedures and numerical examples are also presented. A similar approach applies to the generic multi-item make-to-stock inventory systems in which a typical customer order consists of a kit of items.

Keywords: inventory/production; multi-item; operating characteristics; stochastic; probability; applications; Markov processes; stochastic model applications (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (45)

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