O𝕡timal Run Quantities for an Assembly System with Random Yields

David D. W. Yao

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Supply Chain and Inventory Management Reliability and Maintenance Optimization Management and Optimization Techniques

Abstract

An assembly system consists of m production lines, each of which produces a certain type of component. The components are then fed into an assembly stage, where each set of m components, one unit from each different type, are assembled. Due to uncertainties involved in the production lines, the component yields are random. The optimization problem is to find the run quantities of the components, in order to minimize the total setup cost while guarantee at a certain level the probability of achieving a given target yield from the assembly stage. Solution procedures are developed that efficiently solve the problem under convex setup costs and increasing failure rate (IFR) component yield distributions. Also studied are the computation of the expected yield and the effect of variability.

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1979Decision Systems for Inventory Management and Production Planning 1986Decision systems for inventory management and production planning 1982Approximating a Point Process by a Renewal Process, I: Two Basic Methods

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2007Production planning for remanufactured products 2004Optimal Policies for Production/Inventory Systems with Finite Capacity and Markov-Modulated Demand and Supply Processes 2016Optimal production planning for assembly systems with uncertain capacities and random demand 2013The role of spot market in a decentralised supply chain under random yield 2010TECHNICAL NOTE—Optimal Product Pricing and Component Production Quantities for an Assembly System Under Supply Uncertainty 2015Component procurement strategies in decentralized assembly systems under supply uncertainty 2017Managing global sourcing with disruption risks in an assemble-to-order system 2014Coordinating decentralised assembly systems with random yield and random demand

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