zbMATH — the first resource for mathematics

Order fill rate, leadtime variability, and advance demand information in an assemble-to-order system. (English) Zbl 1163.90465
Summary: 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.

90B30 Production models
Full Text: DOI