search query: @indexterm COST BENEFIT ANALYSIS / total: 335
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| Author: | Hillier, M. S. |
| Title: | The costs and benefits of commonality in assemble-to- order systems with a (Q,r)-policy for component replenishment |
| Journal: | European Journal of Operational Research
2002 : SEP, VOL. 141:3, p. 570-586 |
| Index terms: | INVENTORIES MANUFACTURING INDUSTRY ANALYTICAL REVIEW COST BENEFIT ANALYSIS |
| Language: | eng |
| Abstract: | In assemble-to-order systems, it has been shown that replacing a number of specific components by a smaller number of general-purpose, common components can reduce required safety stock levels due to the benefits of risk pooling. Previous research using single-period models has shown that even if the common components are somewhat more expensive than the unique components they replace, the benefits of risk pooling often outweigh the added purchasing costs. However, this has been shown often not to be the case with multiple- period models - in the long ran, the added purchasing costs dominate the benefits of risk pooling. However, both single- and multiple-period models ignore one of the benefits of commonality - order pooling. |
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