Component commonality under no-holdback allocation rules

Jim Shi; Yao Zhao

doi:10.1016/j.orl.2014.06.001

Component commonality under no-holdback allocation rules

Jim Shi
, Yao Zhao

MT School of Management

Research output: Contribution to journal › Article › peer-review

14 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 language	English (US)
Pages (from-to)	409-413
Number of pages	5
Journal	Operations Research Letters
Volume	42
Issue number	6-7
DOIs	https://doi.org/10.1016/j.orl.2014.06.001
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

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10.1016/j.orl.2014.06.001

Cite this

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title = "Component commonality under no-holdback allocation rules",

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.",

keywords = "ATO system, Component commonality, No-holdback allocation rule",

author = "Jim Shi and Yao Zhao",

note = "Funding Information: We are grateful to Dr. Sridhar Seshadri (the Area Editor) and the reviewer for their valuable comments that have significantly improved the quality and presentation of the paper. The second author is supported in part by the career award 0747779 from the National Science Foundation .",

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AU - Zhao, Yao

N1 - Funding Information: We are grateful to Dr. Sridhar Seshadri (the Area Editor) and the reviewer for their valuable comments that have significantly improved the quality and presentation of the paper. The second author is supported in part by the career award 0747779 from the National Science Foundation .

PY - 2014/9

Y1 - 2014/9

N2 - 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.

AB - 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.

KW - ATO system

KW - Component commonality

KW - No-holdback allocation rule

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UR - https://www.scopus.com/pages/publications/84904984867#tab=citedBy

U2 - 10.1016/j.orl.2014.06.001

DO - 10.1016/j.orl.2014.06.001

M3 - Article

AN - SCOPUS:84904984867

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VL - 42

SP - 409

EP - 413

JO - Operations Research Letters

JF - Operations Research Letters

IS - 6-7

ER -

Component commonality under no-holdback allocation rules

Abstract

All Science Journal Classification (ASJC) codes

Keywords

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