SERVICE LEVEL EVALUATION OF AN ASSEMBLY-TO-ORDER SYSTEM

An assembly-to-order system, which at the end the buffer distinguishes its assembly stages of the system from the downstream systems, is considered in this paper. The system produces semi-finished products for the downstream system and starts from a basic subassembly, and at each stage a component is assembled into the corresponding subassembly. The basic subassembly, components and buffer all follow a periodic-review, order up-to-level inventory policy. The buffer holds the semi-finished products to serve the specific demand from the downstream system. The service level of the system is determined by aggregate effects of the components held at stockpiles before the buffer and the basic subassembly. In order to measure the service level of the system, some notations and assumptions are made, on which the closed form expression of the service level of the system is achieved.