Skip to main content

Coordinated Replenishment Policy for a Decentralized Assembly System Based on Supply Hub Under Stochastic Lead Times

  • Conference paper
  • First Online:
LISS 2013

Abstract

To analyze effects of coordination, we consider a decentralized assembly system, which consists of two suppliers, one supply hub and one manufacturer. We propose two kinds of component replenishment policy, including decentralized strategy and coordinated strategy. We compare both strategies, and show that cost advantage of the coordinated strategy than the decentralized strategy is mainly governed by the cost structure and the service level. We examine and discuss the relation between parameters and the optimal component replenishment policy.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 279.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Chauhan SS, Dolgui A, Proth JM (2009) A continuous model for supply planning of assembly systems with stochastic component procurement times. Int J Prod Econom 120:411–417

    Article  Google Scholar 

  • Fujiwara O, Swdarage D (1997) An optimal (Q, r) policy for a multipart assembly system under stochastic part procurement lead times. Eur J Oper Res 100:550–556

    Article  Google Scholar 

  • Gaonkar R, Viswanadham N (2001) Collaborative scheduling model for supply-hub management. In: 3rd AEGEAN international conference on design and analysis of manufacturing systems, vol 1. Editions ZITI, Thessaloniki, Tinos Island, Greece, pp 1–6

    Google Scholar 

  • Gong FM, Ma SH (2008) Supply chain logistics collaborative organization and operation management technologies based on 3PL-hub. Logist Technol 27(2):85–88

    Google Scholar 

  • Grout JR, Christy DP (1996) A model of incentive contracts for just-in-time delivery. Eur J Oper Res 96(1):139–147

    Article  Google Scholar 

  • Guirida AL, Nagi R (2006) Cost characterizations of supply chain delivery performance. Int J Prod Econom 102:22–36

    Article  Google Scholar 

  • Li G, Gao T, Ma SH, Wang ZH (2011) Supply collaboration in supply chain under uncertain delivery time and BOM pay-on-produce mode. Comput Integr Manuf Syst 17(2):369–379

    Google Scholar 

  • Mohebbi E, Posner MJM (1998) A continuous review inventory system with lost sales and variable lead time. Naval Res Logist 45:259–278

    Article  Google Scholar 

  • Song JS, Zipkin P (2003) Chapter 11: Supply chain operations: assemble-to-order systems. In: Handbooks in operations research and management science, vol 1. North Holland, Amsterdam, pp 561–596

    Google Scholar 

  • Tang O, Grubbström RW (2003) The detailed coordination problem in a two-level assembly system with stochastic lead times. Int J Prod Econ 81–82:415–429

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Jianhong Yu .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2015 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

Yu, J., Wan, F., Zhou, Q. (2015). Coordinated Replenishment Policy for a Decentralized Assembly System Based on Supply Hub Under Stochastic Lead Times. In: Zhang, R., Zhang, Z., Liu, K., Zhang, J. (eds) LISS 2013. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-40660-7_23

Download citation

Publish with us

Policies and ethics