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A dynamic programming approach to integrated assembly planning and supplier assignment with lead time constraints

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  • Heng Kuang
  • S. Jack Hu
  • Jeonghan Ko

Abstract

As manufacturers face fierce competition in the global market, responsiveness has become an important competitiveness factor in addition to quality and cost. One essential responsiveness strategy is to reduce product development and lead times by integrating assembly planning with supplier assignment. This paper addresses the problem of integrated assembly and supply chain design under lead-time constraints by formulating and solving an optimisation problem with minimal total supply chain costs. This new time-constrained joint optimisation problem belongs to an NP-hard resource-constrained scheduling problem. To model this problem effectively, we develop a novel Hyper AND/OR graph and apply it for integrating assembly and supply chain decisions. We also develop a dynamic programming model and associated algorithm in order to solve the integrated optimisation problem with pseudo-polynomial time complexity in practice. Numerical case studies validate that the methods developed can solve the integrated decision-making problem optimally and efficiently. This paper overcomes the limitations of previous studies on concurrent assembly decomposition and supplier selection, which optimises cost without time constraints. The models and results of this research can be applied to a variety of areas including assembly design, maintenance module planning and supply chain restructuring.

Suggested Citation

  • Heng Kuang & S. Jack Hu & Jeonghan Ko, 2016. "A dynamic programming approach to integrated assembly planning and supplier assignment with lead time constraints," International Journal of Production Research, Taylor & Francis Journals, vol. 54(9), pages 2691-2708, May.
    • Handle: RePEc:taf:tprsxx:v:54:y:2016:i:9:p:2691-2708
    DOI: 10.1080/00207543.2015.1118575
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    References listed on IDEAS

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    Cited by:

    1. Ben-Ammar, Oussama & Bettayeb, Belgacem & Dolgui, Alexandre, 2019. "Optimization of multi-period supply planning under stochastic lead times and a dynamic demand," International Journal of Production Economics, Elsevier, vol. 218(C), pages 106-117.
    2. Oussama Ben-Ammar & Belgacem Bettayeb & Alexandre Dolgui, 2019. "Integrated production planning and quality control for linear production systems under uncertainties of cycle time and finished product quality," Post-Print hal-02415341, HAL.
    3. Ben-Ammar, Oussama & Dolgui, Alexandre & Wu, Desheng Dash, 2018. "Planned lead times optimization for multi-level assembly systems under uncertainties," Omega, Elsevier, vol. 78(C), pages 39-56.

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