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- Title
Single-Period Two-Product Assemble-to-Order Systems with a Common Component and Uncertain Demand Patterns.
- Authors
Xiao, Yongbo; Chen, Jian; Lee, Chung‐Yee
- Abstract
We consider a single-period assemble-to-order system that produces two types of end products to satisfy two independent and stochastic customer orders. Each type of product is used to fulfill a particular customer order and these two products share a common component. Furthermore, one customer may confirm her order before the other one, and the manufacturer needs to make a commitment immediately upon the receipt of each customer order on how many products to be delivered. We propose a model for optimizing the inventory and production decisions under the above ATO environment. We also extend our model to the situation where the manufacturer can fulfill the unsatisfied low-priority demand using the left-over inventories after fulfilling the high-priority demand, in case the low-priority customer arrives first. Numerical experiments are conducted, which provide some interesting insights on the impact of uncertain demand pattern.
- Subjects
ASSEMBLE-to-order systems; REVENUE management; STOCHASTIC models; ECONOMIC demand; INVENTORIES; MANUFACTURED products
- Publication
Production & Operations Management, 2010, Vol 19, Issue 2, p216
- ISSN
1059-1478
- Publication type
Article
- DOI
10.1111/j.1937-5956.2009.01074.x