Order fill rate, leadtime variability, and advance demand information in an assemble-to-order system

Journal Article (Journal Article)

We study an assemble-to-order system with stochastic leadtimes for component replenishment. There are multiple product types, of which orders arrive at the system following batch Poisson processes. Base-stock policies are used to control component inventories. We analyze the system as a set of queues driven by a common, multiclass batch Poisson input, and derive the joint queue-length distribution. The result leads to simple, closed-form expressions of the first two moments, in particular the covariances, which capture the dependence structure of the system. Based on the joint distribution and the moments, we derive easy-to-compute approximations and bounds for the order fulfillment performance measures. We also examine the impact of demand and leadtime variability, and investigate the value of advance demand information.

Full Text

Duke Authors

Cited Authors

  • Lu, Y; Song, JS; Yao, DD

Published Date

  • March 1, 2003

Published In

Volume / Issue

  • 51 / 2

Start / End Page

  • 292 - 308

International Standard Serial Number (ISSN)

  • 0030-364X

Digital Object Identifier (DOI)

  • 10.1287/opre.

Citation Source

  • Scopus