Article ID Journal Published Year Pages File Type
1143076 Operations Research Letters 2008 7 Pages PDF
Abstract

We study the optimal control of an assembly system that produces one assembled-to-order final product with multiple made-to-stock components and sells it at variable price. It is shown that a threshold control on component production, product price, and product orders maximizes total discounted profit over an infinite horizon.

Keywords
Related Topics
Physical Sciences and Engineering Mathematics Discrete Mathematics and Combinatorics
Preview
Optimal control of price and production in an assemble-to-order system
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