IDEAS home Printed from https://ideas.repec.org/a/taf/uiiexx/v44y2012i5p386-403.html
   My bibliography  Save this article

Optimal control of an assembly system with demand for the end-product and intermediate components

Author

Listed:
  • Oben Ceryan
  • Izak Duenyas
  • Yoram Koren

Abstract

This article considers the production and admission control decisions for a two-stage manufacturing system where intermediate components are produced to stock in the first stage and an end-product is assembled from these components through a second-stage assembly operation. The firm faces two types of demand. The demand for the end-product is satisfied immediately if there are available products in inventory while the firm has the option to accept the order for later delivery or to reject it when no inventory is available. Demand for intermediate components may be accepted or rejected to keep components available for assembly purposes. The structure of demand admission, component production and product assembly decisions are characterized. The proposed model is extended to take into account multiple customer classes and a more general revenue collecting scheme where only an upfront partial payment is collected if a customer demand is accepted for future delivery with the remaining revenue received upon delivery. Since the optimal policy structure is rather complex and defined by switching surfaces in a multidimensional space, a simple heuristic policy is proposed for which the computational load grows linearly with the number of products and its performance is tested under a variety of example problems.

Suggested Citation

  • Oben Ceryan & Izak Duenyas & Yoram Koren, 2012. "Optimal control of an assembly system with demand for the end-product and intermediate components," IISE Transactions, Taylor & Francis Journals, vol. 44(5), pages 386-403.
    • Handle: RePEc:taf:uiiexx:v:44:y:2012:i:5:p:386-403
    DOI: 10.1080/0740817X.2011.609525
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/0740817X.2011.609525
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/0740817X.2011.609525?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. de Kok, Ton & Grob, Christopher & Laumanns, Marco & Minner, Stefan & Rambau, Jörg & Schade, Konrad, 2018. "A typology and literature review on stochastic multi-echelon inventory models," European Journal of Operational Research, Elsevier, vol. 269(3), pages 955-983.
    2. Kim, Hyunjung & Kim, Eungab, 2022. "A hybrid manufacturing system with demand for intermediate goods and controllable make-to-stock production rate," European Journal of Operational Research, Elsevier, vol. 303(3), pages 1244-1257.
    3. Elhafsi, Mohsen & Hamouda, Essia, 2015. "Managing an assemble-to-order system with after sales market for components," European Journal of Operational Research, Elsevier, vol. 242(3), pages 828-841.
    4. Gregory A. DeCroix, 2013. "Inventory Management for an Assembly System Subject to Supply Disruptions," Management Science, INFORMS, vol. 59(9), pages 2079-2092, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:uiiexx:v:44:y:2012:i:5:p:386-403. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/uiie .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.