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A note on analytic calculation of planned lead times for assembly systems under POQ policy and service level constraint

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  • Louly, Mohamed-Aly
  • Dolgui, Alexandre

Abstract

The problem of MRP offsetting for assembly systems with random component procurement times is considered. POQ policy is used for the case where all components have identical lead time distributions and holding costs. An analytical optimization model is proposed and solved. This model minimizes the sum of the average holding and setup costs for the components while satisfying a desired service level. Compared with known approaches, this is a multi-period model with no restriction on the number of components. All possible distributions can be used for component lead times. The decision variables are integer; they represent the periodicity and planned lead times for components. The model can be used for initial approximate calculation of safety lead times in many industrial situations. Finally, the advantage of this analytical model is in its simplicity.

Suggested Citation

  • Louly, Mohamed-Aly & Dolgui, Alexandre, 2012. "A note on analytic calculation of planned lead times for assembly systems under POQ policy and service level constraint," International Journal of Production Economics, Elsevier, vol. 140(2), pages 778-781.
    • Handle: RePEc:eee:proeco:v:140:y:2012:i:2:p:778-781
    DOI: 10.1016/j.ijpe.2010.09.016
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    References listed on IDEAS

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    1. Louly, Mohamed-Aly & Dolgui, Alexandre & Hnaien, Faicel, 2008. "Supply planning for single-level assembly system with stochastic component delivery times and service-level constraint," International Journal of Production Economics, Elsevier, vol. 115(1), pages 236-247, September.
    2. Ould-Louly, Mohamed-Aly & Dolgui, Alexandre, 2004. "The MPS parameterization under lead time uncertainty," International Journal of Production Economics, Elsevier, vol. 90(3), pages 369-376, August.
    3. Tang, Ou & Grubbstrom, Robert W., 2003. "The detailed coordination problem in a two-level assembly system with stochastic lead times," International Journal of Production Economics, Elsevier, vol. 81(1), pages 415-429, January.
    4. Mula, J. & Poler, R. & Garcia-Sabater, J.P. & Lario, F.C., 2006. "Models for production planning under uncertainty: A review," International Journal of Production Economics, Elsevier, vol. 103(1), pages 271-285, September.
    5. Arda, Yasemin & Hennet, Jean-Claude, 2006. "Inventory control in a multi-supplier system," International Journal of Production Economics, Elsevier, vol. 104(2), pages 249-259, December.
    6. Dolgui, Alexandre & Ould-Louly, Mohamed-Aly, 2002. "A model for supply planning under lead time uncertainty," International Journal of Production Economics, Elsevier, vol. 78(2), pages 145-152, July.
    7. Hayya, Jack C. & Bagchi, Uttarayan & Kim, Jeon G. & Sun, Daewon, 2008. "On static stochastic order crossover," International Journal of Production Economics, Elsevier, vol. 114(1), pages 404-413, July.
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    Cited by:

    1. Faicel Hnaien & Alexandre Dolgui & Desheng Dash Wu, 2016. "Single-period inventory model for one-level assembly system with stochastic lead times and demand," International Journal of Production Research, Taylor & Francis Journals, vol. 54(1), pages 186-203, January.

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