Leadtime and quantity decision in assembly system with spot market | IEEE Conference Publication | IEEE Xplore

Leadtime and quantity decision in assembly system with spot market


Abstract:

A two-stage assembly system is considered. An assembler procures associated component parts and assembles final products to fulfill a random quantity of demand. The final...Show More

Abstract:

A two-stage assembly system is considered. An assembler procures associated component parts and assembles final products to fulfill a random quantity of demand. The final product must be delivered in a certain time; otherwise a delay cost is incurred. Lead times of the components are independent stochastic variables. And, in our model, except regular channels from which the components is procured before the demand reason, components spot markets exist for the need when ordered quantity is not enough. That is, we consider random demand quantity and random operation times at the same time in an assembly system with components spot market. The objective is to minimize the total expected cost. We investigate the structure of optimal operation time plan and quantity decision. The analytical and heuristics numerical result manifest some management insights of the system.
Date of Conference: 10-13 October 2004
Date Added to IEEE Xplore: 07 March 2005
Print ISBN:0-7803-8566-7
Print ISSN: 1062-922X
Conference Location: The Hague

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