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Push verse Pull: Inventory-Leadtime Tradeoff for Managing System Variability
2020
European Journal of Operational Research
We study a two-stage push-pull system in an assemble-to-order manufacturing environment. Modelling the system as an inventory-queue model, we construct a decision model to determine the optimal stock level of the semifinished base product and the optimal leadtime of the finished products that will minimize the total operational cost. We analytically characterize the structure of the optimal policy. For systems with moderate demand and upstream processing time variabilities, there exists a
doi:10.1016/j.ejor.2020.04.033
fatcat:znounafiabbqdhhrwrsh2mlyuq