Reducing the Research Space of Possible Order Release Dates for Multi-level Assembly Systems under Stochastic Lead Times

Abstract

This paper proposes tools which will be used to optimize multi-level assembly under lead time uncertainty. One type of finished products and several types of components are considered. We suppose that each component has a fixed unit inventory cost and the finished product has backlogging and inventory holding costs per unit of time. The lead times of components are discrete random variables, and the costumer's demand of the finished product is known. A reduced space of research is presented to strengthen optimization methods which have been applied for minimizing the sum of the average inventory holding cost for components and the average backlogging and inventory holding costs for the finished product. © IFIP International Federation for Information Processing 2014.