Approximation methods for the analysis of a multicomponent,multiproduct assemble‐to‐order system |
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| Authors: | Ke Fu Vernon N. Hsu Chung‐Yee Lee |
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| Affiliation: | 1. Lingnan College, Sun Yat‐sen University, Guangzhou 510275, China;2. Department of Decision Sciences & Managerial Economics, Faculty of Business Administration, The Chinese University of Hong Kong, Shatin, New Teritories, Hong Kong;3. Department of Industrial Engineering and Logistics Management, The Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong |
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| Abstract: | In this article, we consider the performance evaluation of a multicomponent, multiproduct assemble‐to‐order (ATO) system. Each component is managed independently using a base‐stock policy at a supply facility with limited production capacity and an infinite buffer. The arrivals of demands follow a multivariate Poisson process and unfilled demands are backlogged. Because exact analysis of the proposed system is not feasible, we propose two approximation methods which provide upper and lower bounds for various performance measures such as fill rate, average waiting time, and average number of backorders of the proposed system. Our computational experiments demonstrate the effectiveness of the two approximation methods under various system settings. © 2011 Wiley Periodicals, Inc. Naval Research Logistics, 2011 |
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| Keywords: | assemble‐to‐order matrix‐geometric approximation queueing |
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