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

Publication ,  Journal Article
Lu, Y; Song, JS; Yao, DD
Published in: Operations Research
March 1, 2003

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.

Duke Scholars

Published In

Operations Research

DOI

ISSN

0030-364X

Publication Date

March 1, 2003

Volume

51

Issue

2

Start / End Page

292 / 308

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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Lu, Y., Song, J. S., & Yao, D. D. (2003). Order fill rate, leadtime variability, and advance demand information in an assemble-to-order system. Operations Research, 51(2), 292–308. https://doi.org/10.1287/opre.51.2.292.12781
Lu, Y., J. S. Song, and D. D. Yao. “Order fill rate, leadtime variability, and advance demand information in an assemble-to-order system.” Operations Research 51, no. 2 (March 1, 2003): 292–308. https://doi.org/10.1287/opre.51.2.292.12781.
Lu Y, Song JS, Yao DD. Order fill rate, leadtime variability, and advance demand information in an assemble-to-order system. Operations Research. 2003 Mar 1;51(2):292–308.
Lu, Y., et al. “Order fill rate, leadtime variability, and advance demand information in an assemble-to-order system.” Operations Research, vol. 51, no. 2, Mar. 2003, pp. 292–308. Scopus, doi:10.1287/opre.51.2.292.12781.
Lu Y, Song JS, Yao DD. Order fill rate, leadtime variability, and advance demand information in an assemble-to-order system. Operations Research. 2003 Mar 1;51(2):292–308.

Published In

Operations Research

DOI

ISSN

0030-364X

Publication Date

March 1, 2003

Volume

51

Issue

2

Start / End Page

292 / 308

Related Subject Headings

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