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Minimizing customer order lead-time in a two-stage assembly supply chain

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  • James Blocher
  • Dilip Chhajed

Abstract

Coordination across different process stages of the supply chain is becoming more common as the information needed for this coordination is easier to obtain and share. With the availability of this information, managers are beginning to recognize that there can be benefits to scheduling processes in a coordinated fashion. Thus, finding good schedules for the entire supply chain has added importance to today’s managers. Coordination of the material as it moves from one stage to the next should lead to improved customer order lead-time performance for the whole chain and thus better customer service overall. We look at a two-stage assembly supply chain with the objective of minimizing the average customer order lead-time. Minimizing lead-time is becoming increasingly important as customers demand quicker response. But beyond this better customer service objective, minimizing lead-time is consistent with keeping inventory costs low. We introduce a number of properties of optimal solutions, results for special problem cases, and a series of lower bounds. We also provide a number of intuitive heuristics for coordinated supply chain scheduling and test them to determine their effectiveness. Copyright Springer Science+Business Media, LLC 2008

Suggested Citation

  • James Blocher & Dilip Chhajed, 2008. "Minimizing customer order lead-time in a two-stage assembly supply chain," Annals of Operations Research, Springer, vol. 161(1), pages 25-52, July.
    • Handle: RePEc:spr:annopr:v:161:y:2008:i:1:p:25-52:10.1007/s10479-007-0289-7
    DOI: 10.1007/s10479-007-0289-7
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    References listed on IDEAS

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    Cited by:

    1. Lei Li & Ting Chi & Tongtong Hao & Tao Yu, 2018. "Customer demand analysis of the electronic commerce supply chain using Big Data," Annals of Operations Research, Springer, vol. 268(1), pages 113-128, September.
    2. Lixin Tang & Feng Li & Zhi-Long Chen, 2019. "Integrated Scheduling of Production and Two-Stage Delivery of Make-to-Order Products: Offline and Online Algorithms," INFORMS Journal on Computing, INFORMS, vol. 31(3), pages 493-514, July.
    3. Xu Guan & Guo Li & Zhe Yin, 2016. "The implication of time-based payment contract in the decentralized assembly system," Annals of Operations Research, Springer, vol. 240(2), pages 641-659, May.
    4. Framinan, Jose M. & Perez-Gonzalez, Paz & Fernandez-Viagas, Victor, 2019. "Deterministic assembly scheduling problems: A review and classification of concurrent-type scheduling models and solution procedures," European Journal of Operational Research, Elsevier, vol. 273(2), pages 401-417.
    5. An Pan & Tsan-Ming Choi, 2016. "An agent-based negotiation model on price and delivery date in a fashion supply chain," Annals of Operations Research, Springer, vol. 242(2), pages 529-557, July.

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