Theory of linear and integer programming
Theory of linear and integer programming
Due-date setting and priority sequencing in a multiclass M/G.1 queue
Management Science
Single facility due date setting with multiple customer classes
Management Science
Dynamic scheduling in multiclass queueing networks: Stability under discrete-review policies
Queueing Systems: Theory and Applications
Leadtime-Inventory Trade-Offs in Assemble-To-Order Systems
Operations Research
On the Order Fill Rate in a Multi-Item, Base-Stock Inventory System
Operations Research
Inventory-Service Optimization in Configure-to-Order Systems
Manufacturing & Service Operations Management
Optimal Leadtime Differentiation via Diffusion Approximations
Operations Research
Stochastic Optimal Control Of Ato Systems With Batch Arrivals Via Diffusion Approximation
Probability in the Engineering and Informational Sciences
Queueing Systems: Theory and Applications
Manufacturing & Service Operations Management
The Value of Component Commonality in a Dynamic Inventory System with Lead Times
Manufacturing & Service Operations Management
No-Holdback Allocation Rules for Continuous-Time Assemble-to-Order Systems
Operations Research
Exploiting Market Size in Service Systems
Manufacturing & Service Operations Management
Optimal control of price and production in an assemble-to-order system
Operations Research Letters
Manufacturing & Service Operations Management
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We consider an assemble-to-order system with a high volume of prospective customers arriving per unit time. Our objective is to maximize expected infinite-horizon discounted profit by choosing product prices, component production capacities, and a dynamic policy for sequencing customer orders for assembly. We prove that a myopic discrete-review sequencing policy, which allocates scarce components among orders for different products to minimize instantaneous physical and financial holding costs, is asymptotically optimal. Furthermore, we prove that optimal prices and production capacity nearly balance the supply and demand for components (i.e., it is economically optimal to operate the system in heavy traffic), so system performance is characterized by a diffusion approximation. The diffusion approximation exhibits state-space collapse: Its dimension equals the number of components (rather than the number of components plus the number of products). These results complement the existing assemble-to-order literature, which focuses on managing component inventory and assumes FIFO sequencing of orders for assembly.