No-Holdback allocation rules for continuous-time assemble-to-order systems
Abstract
This paper analyzes a class of common-component allocation rules, termed no-holdback
(NHB) rules, in continuous-review assemble-to-order (ATO) systems with positive lead
times. The inventory of each component is replenished following an independent base-stock
policy. In contrast to the usually assumed first-come-first-served (FCFS) component
allocation rule in the literature, an NHB rule allocates a component to a product
demand only if it will yield immediate fulfillment of that demand. We identify metrics
as well as cost and product structures under which NHB rules outperform all other
component allocation rules. For systems with certain product structures, we obtain
key performance expressions and compare them to those under FCFS. For general product
structures, we present performance bounds and approximations. Finally, we discuss
the applicability of these results to more general ATO systems. © 2010 INFORMS.
Type
Journal articlePermalink
https://hdl.handle.net/10161/4434Published Version (Please cite this version)
10.1287/opre.1090.0785Publication Info
Lu, Y; Song, JS; & Zhao, Y (2010). No-Holdback allocation rules for continuous-time assemble-to-order systems. Operations Research, 58(3). pp. 691-705. 10.1287/opre.1090.0785. Retrieved from https://hdl.handle.net/10161/4434.This is constructed from limited available data and may be imprecise. To cite this
article, please review & use the official citation provided by the journal.
Collections
More Info
Show full item recordScholars@Duke
Jing-Sheng Song
R. David Thomas Distinguished Professor of Business Administration

Articles written by Duke faculty are made available through the campus open access policy. For more information see: Duke Open Access Policy
Rights for Collection: Scholarly Articles
Works are deposited here by their authors, and represent their research and opinions, not that of Duke University. Some materials and descriptions may include offensive content. More info