Please use this identifier to cite or link to this item:
|Title:||Component commonality in assembled-to-stock systems|
|Authors:||Chew, E.K.P. |
|Citation:||Chew, E.K.P., Lee, L.H., Lau, Y.L. (2006-03). Component commonality in assembled-to-stock systems. IIE Transactions (Institute of Industrial Engineers) 38 (3) : 239-251. ScholarBank@NUS Repository. https://doi.org/10.1080/07408170500436724|
|Abstract:||This paper quantifies the impact of component sharing in a two-echelon assembled-to-stock system consisting of several common components and end-products. Whereas there is a benefit from risk pooling when component sharing is allowed, there is also a component-mismatch problem due to the demand uncertainty for end-products. We study these conflicting effects by comparing a particular component sharing policy, namely the equal-fractile allocation policy, with a make-to-stock system which does not allow the allocation of common components. The probabilistic analysis shows that when each type of component is shared by at least two end-products, the equal-fractile allocation policy will always help to reduce the safety stock required to be held at a sufficiently high service level. We also look at a special scenario of the equal-fractile allocation policy which takes into account inventory cost considerations. We show that this problem can be formulated as a newsvendor problem. Copyright © 2006 "IIE".|
|Source Title:||IIE Transactions (Institute of Industrial Engineers)|
|Appears in Collections:||Staff Publications|
Show full item record
Files in This Item:
There are no files associated with this item.
checked on Jul 18, 2018
WEB OF SCIENCETM
checked on Jun 4, 2018
checked on Apr 21, 2018
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.