October 5: Yao Zhao (Rutgers University)

"Analysis and Evaluation of Assemble-to-Order Systems with Stochastic Sequential Lead-Times"

Assemble-to-Order Systems represent important supply chain strategies that allow manufacturers to better match supply and demand. In such a system, manufacturers keep inventory of components and assemble finished goods only after demand is realized. A long standing challenge in the inventory control literature is the exact analysis of even simple assembly systems with random demand and stochastic sequential lead-times. Real world Assemble-to-Order systems, such as the one used by Dell Computers, pose more substantial challenges both analytically and computationally because they involve both assembly and distribution systems. In this talk, we present a unified modeling approach, namely, the “backward method”, that facilitates exact analysis and efficient evaluation of various Assemble-to-Order systems with stochastic sequential lead-times, with multiple products and when component inventories are controlled by either base-stock or batch ordering policies. In conclusion, I will discuss another application of the methodology: evaluation and coordination of installation inventory policies in tree structure supply chains.

Visit Professor Zhao's webpage.

Unless otherwise noted, all talks are in Smith 107, at 4:00 PM on Wednesday. From 3:30 to 4:00PM the audience is invited for refreshments in the lounge on the 2nd floor of the Smith Building.

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