A General Decomposition Algorithm for Parallel Queues with Correlated Arrivals
Queueing Systems: Theory and Applications
Optimal Control of a High-Volume Assemble-to-Order System
Mathematics of Operations Research
Discrete Optimization via Simulation Using COMPASS
Operations Research
IBM Journal of Research and Development - Business optimization
Queueing Systems: Theory and Applications
The Value of Component Commonality in a Dynamic Inventory System with Lead Times
Manufacturing & Service Operations Management
Towards product customization: An integrated order fulfillment system
Computers in Industry
A Supply Network's Optimal Information System and Material Flows
International Journal of Information Systems and Supply Chain Management
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This study is motivated by a process-reengineering problem in personal computer (PC) manufacturing, i.e., to move from a build-to-stock operation that is centered around end-product inventory towards a configure-to-order (CTO) operation that eliminates endproduct inventory. In fact, CTO has made irrelevant the notion of preconfigured machine types and focuses instead on maintaining the right amount of inventory at the components. CTO appears to be the ideal operational model that provides both mass customization and a quick response time to order fulfillment. To quantify the inventory-service trade-off in the CTO environment, we develop a nonlinear optimization model with multiple constraints, reflecting the service levels offered to different market segments. To solve the optimization problem, we develop an exact algorithm for the important case of demand in each market segment having (at least) one unique component, and a greedy heuristic for the general (nonunique component) case. Furthermore, we show how to use sensitivity analysis, along with simulation, to fine-tune the solutions. The performance of the model and the solution approach is examined by extensive numerical studies on realistic problem data. We present the major findings in applying our model to study the inventory-service impacts in the reengineering of a PC manufacturing process.