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Original Articles

A dynamic programming approach to integrated assembly planning and supplier assignment with lead time constraints

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Pages 2691-2708 | Received 14 Apr 2015, Accepted 27 Oct 2015, Published online: 04 Jan 2016
 

Abstract

As manufacturers face fierce competition in the global market, responsiveness has become an important competitiveness factor in addition to quality and cost. One essential responsiveness strategy is to reduce product development and lead times by integrating assembly planning with supplier assignment. This paper addresses the problem of integrated assembly and supply chain design under lead-time constraints by formulating and solving an optimisation problem with minimal total supply chain costs. This new time-constrained joint optimisation problem belongs to an NP-hard resource-constrained scheduling problem. To model this problem effectively, we develop a novel Hyper AND/OR graph and apply it for integrating assembly and supply chain decisions. We also develop a dynamic programming model and associated algorithm in order to solve the integrated optimisation problem with pseudo-polynomial time complexity in practice. Numerical case studies validate that the methods developed can solve the integrated decision-making problem optimally and efficiently. This paper overcomes the limitations of previous studies on concurrent assembly decomposition and supplier selection, which optimises cost without time constraints. The models and results of this research can be applied to a variety of areas including assembly design, maintenance module planning and supply chain restructuring.

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This research was supported in part by the U.S. National Science Foundation (NSF) [grant number 1331633], [grants number 1068029]; the National Research Foundation of Korea (NRF) grant funded by the Korean government (MSIP) [grant number 2014R1A2A2A03006993]; and the Ajou University Research Fund.

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