This paper focuses on the production and assembly control in a two-stage assemble-to-order (ATO) manufacturing system. An ATO manufacturing system keeps inventory only at the component level, and products are assembled only after a customer order is received. ATO systems have a widespread use in various industries where mass customization is popular. The motivation of the problem is due to the need for firms in this setting to effectively coordinate the production of components and allocate the assembly line capacity shared across many different products. We model component production lines and a downstream product assembly line with M/M/1 queues in order to identify optimal policies regarding a firm’s decision on how many components of each type to produce and how to prioritize orders for various products. We also propose an effective heuristic solution that is robust with respect to the number of product alternatives offered.
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ASME 2008 9th Biennial Conference on Engineering Systems Design and Analysis
July 7–9, 2008
Haifa, Israel
Conference Sponsors:
- International
Volume 1: Advanced Energy Systems; Advanced and Digital Manufacturing; Advanced Materials; Aerospace
ISBN:
978-0-7918-4835-7
PROCEEDINGS PAPER
Control of a Two-Stage Assemble-to-Order Manufacturing System Under Demand and Capacity Uncertainties
Oben Ceryan,
Oben Ceryan
University of Michigan, Ann Arbor, MI
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Yoram Koren,
Yoram Koren
University of Michigan, Ann Arbor, MI
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Izak Duenyas
Izak Duenyas
University of Michigan, Ann Arbor, MI
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Oben Ceryan
University of Michigan, Ann Arbor, MI
Yoram Koren
University of Michigan, Ann Arbor, MI
Izak Duenyas
University of Michigan, Ann Arbor, MI
Paper No:
ESDA2008-59585, pp. 481-488; 8 pages
Published Online:
July 6, 2009
Citation
Ceryan, O, Koren, Y, & Duenyas, I. "Control of a Two-Stage Assemble-to-Order Manufacturing System Under Demand and Capacity Uncertainties." Proceedings of the ASME 2008 9th Biennial Conference on Engineering Systems Design and Analysis. Volume 1: Advanced Energy Systems; Advanced and Digital Manufacturing; Advanced Materials; Aerospace. Haifa, Israel. July 7–9, 2008. pp. 481-488. ASME. https://doi.org/10.1115/ESDA2008-59585
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