Supply planning for two-level assembly systems with stochastic component delivery times: trade-off between holding cost and service level
Abstract
A supply planning for two-level assembly systems under lead time uncertainties is considered. It is supposed that the demand for the finished product and its due date are known. It is assumed also that the component lead time at each level is a random discrete variable. The objective is to find the release dates for the components at level 2 in order to minimize the expected component holding costs and to maximize the customer service level for the finished product. A multiobjective approach is considered and numerical results are reported.