A dynamic single-stage multi-item inventory control model

We study assembly systems with one type of finished products and several types of components. The lead times of components are random variables, and the customer demand of finished product is constant. We proposed a Markov chain that enables the determination of system performance measures, and we show how to exploit this model for optimization. Our aim is to minimize the average holding cost for the components while keeping a given service level for customer demands. In this paper we propose lower bounds and dominance properties of goal function. These results can be used in a branch and bound algorithm. Copyright(C) 2001IFAC.