Performance analysis for assemble-to-order systems with general renewal arrivals and random batch demands

Abstract

We study multi-product and multi-item assemble-to-order systems under general assumptions on demand patterns and replenish leadtime distributions. We only assume that the demand process of each product being a renewal process, and the replenish leadtimes follow general distributions. Based upon techniques from renewal theory, we developed procedures for approximating key performance measures of these inventory systems, such as average inventory and immediate order fill rate. We also obtain qualitative results that reveal the impacts of changes in demand patterns and leadtime variability upon the performance of the systems. © 2007 Elsevier B.V. All rights reserved.