A polynomial algorithm for the MPS parameterization under uncertainty
Abstract
The aim of this paper is to study the supply planning of assembly systems under lead times uncertainty. The target is to minimize the sum of the average holding cost for the components and the setup cost, while keeping a desired service level. A further analysis of the Periodic Ordering Quantity policy (POQ) is given. The decision variables are the planned lead times of components and the periodicity of the POQ policy. A mathematical method, which gives the optimal values for these parameters, is given.