Optimal control of a nested-multiple-product assemble-to-order system (original) (raw)

2008, International Journal of Production Research

Optimal control of price and production in an assemble-to-order system

Operations Research Letters, 2008

ABSTRACT We study the optimal control of an assembly system that produces one assembled-to-order final product with multiple made-to-stock components and sells it at variable price. It is shown that a threshold control on component production, product price, and product orders maximizes total discounted profit over an infinite horizon.

Optimal Control of Assemble-to-Order Systems

2000

We consider the optimal control of an assemble-to-order (ATO) system with m components, a single end-product, and n customer classes. Demand from each class occurs continuously over time according to a Poisson process. Components are produced in separate production facilities, each with a finite production rate and exponentially distributed production times. Components can be stocked ahead of demand but incur

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