Note-Controlling Inventories in an Acyclic Assembly System

This note presents a model of an acyclic assembly system that faces yield loss and uncertain demand. While there is no known production rule for managing acyclic systems, we develop a production rule whose operating characteristics could be measured analytically. Thus, the operating characteristics can be used as a benchmark for future comparison. To facilitate our analysis, we extend the model for a serial production system that produces a single product Tang 1990. This extension entails a modification of the production rule and the analysis of a decomposition scheme.

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