Generalized newsboy model to compute the optimal planned lead times in assembly systems

Assembly systems with one type of finished product and several types of components are studied. The lead times of components are random variables, and the finished product demand is constant. The criterion considered is the sum of the average holding cost for the components and the average backlogging cost for the finished product. The decision variables are the planned lead times of components. A model that gives the optimal values for the planned lead times is proposed. From a practical point of view, this model can be used to calculate the safety lead time on assembly systems under supply uncertainty, and from a theoretical point of view, it is a generalization of the well-known discrete newsboy model.

[1]  A. Dolgui,et al.  A model for supply planning under lead time uncertainty , 2002 .

[2]  T. C. Ireland,et al.  Correlating MRP system nervousness with forecast errors , 1998 .

[3]  D. Clay Whybark,et al.  MATERIAL REQUIREMENTS PLANNING UNDER UNCERTAINTY , 1976 .

[4]  Xiaolan Xie,et al.  Supply management in assembly systems , 1993 .

[5]  Steven A. Melnyk,et al.  Implementation of Material Requirements Planning: Safety Lead Times , 1981 .

[6]  B. W. Taylor,et al.  A simulation-based experimental investigation of supply/timing uncertainty in MRP systems , 1984 .

[7]  Alexandre Dolgui,et al.  An Inventory Control Model for MRP Parameterization , 2000 .

[8]  V. Sridharan,et al.  Master production scheduling make-to-stock products: a framework for analysis , 1990 .

[9]  Dean H. Kropp,et al.  A comparison of strategies to dampen nervousness in MRP systems , 1986 .

[10]  W. E. Wilhelm,et al.  Analysis of a single-stage, single-product, stochastic, MRP-controlled assembly system , 1998, Eur. J. Oper. Res..

[11]  Jeff Hoi Yan Yeung,et al.  MPS with multiple freeze fences in multi-product multi-level MRP systems , 1999 .

[12]  J. Lehoczky,et al.  Optimal order policies in assembly systems with random demand and random supplier delivery , 1996 .

[13]  Stephen C. Graves,et al.  A Dynamic Model for Requirements Planning with Application to Supply Chain Optimization , 1998, Oper. Res..

[14]  A. Molinder,et al.  Joint optimization of lot-sizes, safety stocks and safety lead times in an MRP system , 1997 .

[15]  Surendra M. Gupta,et al.  MRP systems under supply and process uncertainty in an integrated shop floor control , 1995 .

[16]  Jack C. Hayya,et al.  An Inventory Model with Order Crossover , 1998, Oper. Res..

[17]  V. Sridharan,et al.  Freezing the Master Production Schedule Under Demand Uncertainty , 1990 .

[18]  Jeff Hoi Yan Yeung,et al.  Parameters affecting the effectiveness of MRP systems: A review , 1998 .

[19]  Dean H. Kropp,et al.  THE EFFECTIVENESS OF EXTENDING THE HORIZON IN ROLLING PRODUCTION SCHEDULING , 1982 .

[20]  Urban Wemmerlöv.  A time-phased order-point system in environments with and without demand uncertainty: a comparative analysis of non-monetary performance variables , 1986 .

[21]  D. J. Bragg.  The effects of partial order release and component reservation on inventory and customer service performance in an MRP environment , 1999 .