2021/05/19 by Mirjam S Meijer, Meijer, Mirjam S, van Jaarsveld, Willem +2
Business, Management and Accounting · Engineering · #FOS: Mathematics #Flexible and Reconfigurable Manufacturing Systems #Optimization and Control (math.OC) #Product Development and Customization #Scheduling and Optimization Algorithms
paper · pdf · doi:10.48550/arxiv.2105.08991
openalex publication_date 2021/05/19 · openalex created_date 2022/07/25 · openalex updated_date 2026/07/28
A high-tech manufacturer often produces products that consist of many\nmodules. These modules are either sourced from one of its suppliers or produced\nin-house. In this paper we study an assembly system in which one module is\nsourced from a supplier with a fixed lead-time, while the other module is\nproduced by the manufacturer itself in a make-to-order production system. Since\nunavailability of one of the modules has costly consequences for the production\nof the end-product, it is important to coordinate between the ordering policy\nfor one module and the production of the other. We propose an order policy for\nthe lead-time module with base-stock levels depending on the number of\noutstanding orders in the production system of the in-house produced module. We\nprove monotonicity properties of this policy and show optimality. Furthermore,\nwe conduct a computational experiment to evaluate how the costs of this policy\ncompare to those of a policy with fixed base-stock levels and show that average\nsavings of 17% are attained.\n