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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Jing-Sheng Song & Susan H. Xu & Bin Liu, 1999. "Order-Fulfillment Performance Measures in an Assemble-to-Order System with Stochastic Leadtimes," Operations Research, INFORMS, vol. 47(1), pages 131-149, February.
    • Handle: RePEc:inm:oropre:v:47:y:1999:i:1:p:131-149
    DOI: 10.1287/opre.47.1.131
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    References listed on IDEAS

    as
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