We study a periodic review assemble-to-order (ATO) system introduced by Akcay
and Xu (2004) which jointly optimizes the base stock levels and the component allocation
with an independent base stock policy and a first-come- first-served allocation
rule. The formulation is a non-smooth and thus theoretically and computationally
challenging. In their computational experiments, Akcay and Xu (2004) modified the
right hand side of the inventory availability constraints by substituting linear functions
for piece-wise linear ones. This modification may have a significant impact on
low budget levels. The optimal solutions obtained via the original formulation, i.e.,
the formulation without modification, include zero base stock levels for some components
and thus indicate a bias against component commonality. We study the impact
of component commonality on periodic review ATO systems. We show that lowering
component commonality may yield a higher type-II service level. The lower degree of
component commonality is achieved via separating inventories of the same component
for different products. We substantiate this property via computational and theoretical
approaches. We show that for low budget levels the use of separate inventories
of the same component for different products can achieve a higher reward than with
shared inventories. Finally, considering a simple ATO system with one component
shared by two products, we characterize the budget ranges such that either separate
or shared inventory component (i.e., component commonality) is beneficial. / Thesis / Doctor of Philosophy (PhD)
Identifer | oai:union.ndltd.org:mcmaster.ca/oai:macsphere.mcmaster.ca:11375/22118 |
Date | January 2017 |
Creators | LIANG, HONGFENG |
Contributors | DEZA, ANTOINE, Computing and Software |
Source Sets | McMaster University |
Language | English |
Detected Language | English |
Type | Thesis |
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