Abstract
This paper considers an optimal policy for an assembly system. In the system, a final product is assembled from two components, each of which is ordered from an external supplier. The final product is in demand. Order lead time, assembly time and demand are assumed to be random. The cost structure consists of the shortage cost for the final product and holding costs for the components and final products. We deal with the optimal control problem in which the optimal order policy for the components and the optimal assembly policy of the final product are decided so as to minimize the expected cost. The optimal control problem is formulated as an undiscounted semi-Markov decision process. Numerical results are shown in order to study the influence of parameters such as order lead time, demand and costs on the optimal policies.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: TRANSACTIONS OF THE JAPAN SOCIETY OF MECHANICAL ENGINEERS Series C
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
