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Component commonality in assemble‐to‐order systems: Models and properties

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  • Yigal Gerchak
  • Mordechai Henig

Abstract

This article presents a general multiperiod model of an assemble‐to‐order system with component commonality and proves that its solution is myopic. The model is then endowed with a capacity or storage constraint, and the resulting behavior of optimal policies is investigated. Interestingly, with such constraint, the optimal stocks of product‐specific components can be lower in an assemble‐to‐order system than in a corresponding make‐to‐stock one, a behavior that is impossible in an unconstrained model.

Suggested Citation

  • Yigal Gerchak & Mordechai Henig, 1989. "Component commonality in assemble‐to‐order systems: Models and properties," Naval Research Logistics (NRL), John Wiley & Sons, vol. 36(1), pages 61-68, February.
    • Handle: RePEc:wly:navres:v:36:y:1989:i:1:p:61-68
    DOI: 10.1002/1520-6750(198902)36:13.0.CO;2-P
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    References listed on IDEAS

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    1. David A. Collier, 1982. "Aggregate Safety Stock Levels and Component Part Commonality," Management Science, INFORMS, vol. 28(11), pages 1296-1303, November.
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    Cited by:

    1. Narendra Agrawal & Morris A. Cohen, 2001. "Optimal material control in an assembly system with component commonality," Naval Research Logistics (NRL), John Wiley & Sons, vol. 48(5), pages 409-429, August.
    2. Mark S. Hillier, 1999. "Product commonality in multiple‐period, make‐to‐stock systems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 46(6), pages 737-751, September.
    3. Morris A. Cohen & Paul R. Kleindorfer & Hau L. Lee & David F. Pyke, 1992. "Multi‐item service constrained (s, S) policies for spare parts logistics systems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 39(4), pages 561-577, June.
    4. Yeu-Shiang Huang & Hau-Wen Lo & Jyh-Wen Ho, 2021. "Effects of component commonality and perishability on inventory control in assemble-to-order systems," Operational Research, Springer, vol. 21(1), pages 205-229, March.
    5. Fernando Bernstein & Gregory A. DeCroix & Yulan Wang, 2007. "Incentives and Commonality in a Decentralized Multiproduct Assembly System," Operations Research, INFORMS, vol. 55(4), pages 630-646, August.
    6. Amit Eynan & Meir J. Rosenblatt, 2007. "The impact of component commonality on composite assembly policies," Naval Research Logistics (NRL), John Wiley & Sons, vol. 54(6), pages 615-622, September.
    7. Uttarayan Bagchi & Genaro Gutierrez, 1992. "Effect of increasing component commonality on service level and holding cost," Naval Research Logistics (NRL), John Wiley & Sons, vol. 39(6), pages 815-832, October.
    8. Alex X. Zhang, 1997. "Demand Fulfillment Rates In An Assembleto‐ Order System With Multiple Products And Dependent Demands," Production and Operations Management, Production and Operations Management Society, vol. 6(3), pages 309-324, September.
    9. 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.
    10. Fernando Bernstein & Gregory A. DeCroix, 2015. "Advance Demand Information in a Multiproduct System," Manufacturing & Service Operations Management, INFORMS, vol. 17(1), pages 52-65, February.

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