Component commonality under no-holdback allocation rules

Jim Shi, Yao Zhao

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

Abstract

We study the value of component commonality in assemble-to-order systems under no-holdback allocation rules. We prove that the total product backorder and on-hand component inventory decrease with probability one as the degree of commonality increases; however, the average cost may not decrease unless a certain cost symmetric condition is imposed.

Original languageEnglish (US)
Pages (from-to)409-413
Number of pages5
JournalOperations Research Letters
Volume42
Issue number6-7
DOIs
StatePublished - Sep 2014

All Science Journal Classification (ASJC) codes

  • Software
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering
  • Applied Mathematics

Keywords

  • ATO system
  • Component commonality
  • No-holdback allocation rule

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