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No-Holdback allocation rules for continuous-time assemble-to-order systems

Publication ,  Journal Article
Lu, Y; Song, JS; Zhao, Y
Published in: Operations Research
May 1, 2010

This paper analyzes a class of common-component allocation rules, termed no-holdback (NHB) rules, in continuous-review assemble-to-order (ATO) systems with positive lead times. The inventory of each component is replenished following an independent base-stock policy. In contrast to the usually assumed first-come-first-served (FCFS) component allocation rule in the literature, an NHB rule allocates a component to a product demand only if it will yield immediate fulfillment of that demand. We identify metrics as well as cost and product structures under which NHB rules outperform all other component allocation rules. For systems with certain product structures, we obtain key performance expressions and compare them to those under FCFS. For general product structures, we present performance bounds and approximations. Finally, we discuss the applicability of these results to more general ATO systems. © 2010 INFORMS.

Duke Scholars

Published In

Operations Research

DOI

EISSN

1526-5463

ISSN

0030-364X

Publication Date

May 1, 2010

Volume

58

Issue

3

Start / End Page

691 / 705

Related Subject Headings

  • Operations Research
  • 3507 Strategy, management and organisational behaviour
  • 1503 Business and Management
  • 0802 Computation Theory and Mathematics
  • 0102 Applied Mathematics
 

Citation

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MLA
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Lu, Y., Song, J. S., & Zhao, Y. (2010). No-Holdback allocation rules for continuous-time assemble-to-order systems. Operations Research, 58(3), 691–705. https://doi.org/10.1287/opre.1090.0785
Lu, Y., J. S. Song, and Y. Zhao. “No-Holdback allocation rules for continuous-time assemble-to-order systems.” Operations Research 58, no. 3 (May 1, 2010): 691–705. https://doi.org/10.1287/opre.1090.0785.
Lu Y, Song JS, Zhao Y. No-Holdback allocation rules for continuous-time assemble-to-order systems. Operations Research. 2010 May 1;58(3):691–705.
Lu, Y., et al. “No-Holdback allocation rules for continuous-time assemble-to-order systems.” Operations Research, vol. 58, no. 3, May 2010, pp. 691–705. Scopus, doi:10.1287/opre.1090.0785.
Lu Y, Song JS, Zhao Y. No-Holdback allocation rules for continuous-time assemble-to-order systems. Operations Research. 2010 May 1;58(3):691–705.

Published In

Operations Research

DOI

EISSN

1526-5463

ISSN

0030-364X

Publication Date

May 1, 2010

Volume

58

Issue

3

Start / End Page

691 / 705

Related Subject Headings

  • Operations Research
  • 3507 Strategy, management and organisational behaviour
  • 1503 Business and Management
  • 0802 Computation Theory and Mathematics
  • 0102 Applied Mathematics