Optimal Dynamic Substitution Policy for Components in an Assemble-to-Order System

In assemble-to-order system, the substitution of higher-class components for lower-class components is often applied when the latter are stock-out. But the decision for substitution should be made in advance in practice. How to manage the substitution in such a system is of managerial interest. The authors model this scenario as a two-stage mathematical programming where the first step is to determine how many to order for each product at the beginning of the selling season, and the second step is to explore the substitution rule. They exploit the structural properties of the substitution rule and present a dynamic substitution policy. Then they show that our substitution policy is a threshold policy and present the upper bound of the threshold.

• Record URL:
  • https://doi.org/10.1061/41064(358)450
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/isbn/9780784410646
• Supplemental Notes:
  • © 2009 American Society of Civil Engineers.
• Corporate Authors:

  American Society of Civil Engineers

  1801 Alexander Bell Drive
  Reston, VA  United States  20191-4400
• Authors:
  • Liu, Yongqiang
  • Chang, Qing
  • Zhang, Xiaohong
  • Gao, Hui
• Conference:
  • Ninth International Conference of Chinese Transportation Professionals (ICCTP)
  • Location: Harbin China, United States
  • Date: 2009-8-5 to 2009-8-9
• Publication Date: 2009

Language

• English

Media Info

• Media Type: Web
• Pagination: pp 1-6
• Monograph Title: ICCTP 2009: Critical Issues In Transportation Systems Planning, Development, and Management

Subject/Index Terms

• TRT Terms: Dynamic programming; Sales; Supply chain management
• Subject Areas: Administration and Management; Freight Transportation; Planning and Forecasting;

Filing Info

• Accession Number: 01921926
• Record Type: Publication
• ISBN: 9780784410646
• Files: TRIS, ASCE
• Created Date: Jun 17 2024 2:45PM