An inventory model with component commonality

Yigal Gerchak*, Mordechai Henig

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

Qualitative implications of component commonality in assemble-to-order systems are discussed. We show that in a static model the stocks of product-specific components always increase when other components are combined. As optimal policy for the dynamic version is shown to be myopic, the qualitative results apply there as well.

Original languageEnglish
Pages (from-to)157-160
Number of pages4
JournalOperations Research Letters
Volume5
Issue number3
DOIs
StatePublished - Aug 1986

Keywords

  • inventory/production
  • stochastic models
  • stochastic programming

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