Title :
Inventory decisions for an assemble-to-order system with two ordering opportunities and multiple transportation modes
Author_Institution :
Lingnan Coll., Sun Yat-sen Univ., Guangzhou, China
Abstract :
We consider inventory decision for an assemble-to-order system with two ordering opportunities and a one-time uncertain demand. The manufacturer can place her first order of the components ahead of demand realization with relatively lower prices. The second emergent order can be placed with relatively higher prices after demand is realized in case of component shortages. There are a number of lead times for each component representing different transportation modes for the second order. The manufacturer has to choose the one that best balance the time and cost tradeoff. We formulate the problem as a stochastic programming problem. We further consider a simpler version with a single component and multiple lead times. We propose several structural properties and a decompose algorithm to solve the problem efficiently.
Keywords :
assembling; decision making; inventory management; lead time reduction; order processing; pricing; stochastic programming; transportation; assemble-to-order system; decompose algorithm; inventory decision; multiple lead time; multiple transportation mode; one-time uncertain demand; pricing; single component; stochastic programming; structural property; two ordering opportunity; Assembly systems; Costs; Electronics industry; Manufacturing; Pricing; Procurement; Stochastic processes; Sun; Transportation; Uncertainty; assemble-to-order system; component procurement lead times; demand uncertainty;
Conference_Titel :
Service Systems and Service Management, 2009. ICSSSM '09. 6th International Conference on
Conference_Location :
Xiamen
Print_ISBN :
978-1-4244-3661-3
Electronic_ISBN :
978-1-4244-3662-0
DOI :
10.1109/ICSSSM.2009.5174995
