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Technical Note—Error Noted in “Order-Based Cost Optimization in Assemble-to-Order Systems” by Lu and Song (2005)

Author

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  • Mohammadreza Bolandnazar

    (Columbia Business School, Columbia University, New York, New York 10027)

  • Woonghee Tim Huh

    (Sauder School of Business, University of British Columbia, Vancouver, British Columbia V6T 1Z2, Canada)

  • S. Thomas McCormick

    (Sauder School of Business, University of British Columbia, Vancouver, British Columbia V6T 1Z2, Canada)

  • Kazuo Murota

    (School of Business Administration, Tokyo Metropolitan University, Tokyo 192-0397, Japan)

Abstract

One of the main results of “Order-Based Cost Optimization in Assemble-to-Order Systems” [ Lu Y, Song J-S (2005) Order-based cost optimization in assemble-to-order systems. Oper. Res. 53(1):151–169] is proposition 1(c), which states that the cost function of an assemble-to-order inventory system satisfies a discrete convexity property called L♮-convexity. We construct a counterexample showing that this result is incorrect, and hence their proposed steepest decent algorithm may not work.

Suggested Citation

  • Mohammadreza Bolandnazar & Woonghee Tim Huh & S. Thomas McCormick & Kazuo Murota, 2019. "Technical Note—Error Noted in “Order-Based Cost Optimization in Assemble-to-Order Systems” by Lu and Song (2005)," Operations Research, INFORMS, vol. 67(1), pages 163-166, January.
    • Handle: RePEc:inm:oropre:v:67:y:2019:i:1:p:163-166
    DOI: 10.1287/opre.2018.1789
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    References listed on IDEAS

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    1. Yingdong Lu & Jing-Sheng Song, 2005. "Order-Based Cost Optimization in Assemble-to-Order Systems," Operations Research, INFORMS, vol. 53(1), pages 151-169, February.
    2. Mehmet A. Begen & Maurice Queyranne, 2011. "Appointment Scheduling with Discrete Random Durations," Mathematics of Operations Research, INFORMS, vol. 36(2), pages 240-257, May.
    3. Paul Zipkin, 2008. "On the Structure of Lost-Sales Inventory Models," Operations Research, INFORMS, vol. 56(4), pages 937-944, August.
    4. Qing Li & Peiwen Yu, 2014. "Multimodularity and Its Applications in Three Stochastic Dynamic Inventory Problems," Manufacturing & Service Operations Management, INFORMS, vol. 16(3), pages 455-463, July.
    5. Woonghee Tim Huh & Ganesh Janakiraman, 2010. "On the Optimal Policy Structure in Serial Inventory Systems with Lost Sales," Operations Research, INFORMS, vol. 58(2), pages 486-491, April.
    6. Zhan Pang & Frank Y. Chen & Youyi Feng, 2012. "Technical Note---A Note on the Structure of Joint Inventory-Pricing Control with Leadtimes," Operations Research, INFORMS, vol. 60(3), pages 581-587, June.
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