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 language | English (US) |
---|---|
Pages (from-to) | 409-413 |
Number of pages | 5 |
Journal | Operations Research Letters |
Volume | 42 |
Issue number | 6-7 |
DOIs | |
State | Published - 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