On the Commonality Problem in Multi-Stage Inventory Control Systems
This paper addresses a so-called assemble-to-order environment. There are a number of end items each of which requires an assembly of several components. Some of the components are unique to specific end items while others are common to two or more final products. Components must, due to their long leadtimes, be ordered prior to knowing the end item demand levels, but final assemblies can be quickly completed after knowing the demands.
KeywordsLagrangean Relaxation Allocation Rule Safety Stock Demand Realization Good Feasible Solution
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