Threshold-Type Control of Supply Chain Systems with Assembly Operations
This chapter first discusses the system stability of the supply chain system with assembly operations described in Chap. 6. Numerical examples are given to illustrate the structural characteristics of the optimal raw materials ordering and finished goods assembly policy in both situations with reliable assembly machines and with failure-prone assembly machines. The results verify the analytical results established in Chap. 6. Then, threshold-type policies are constructed based on the concepts of Kanban, base-stock, and order-up-to-point and the structural properties of the optimal policy for both reliable and unreliable assembly supply chains. The effectiveness of the proposed threshold control policies and their sensitivity to key system parameters are examined through a range of experiments.
KeywordsSupply Chain Optimal Policy Assembly System Assembly Operation Switching Surface
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