Design and optimization of multi-echelon assembly networks: Savings and potentialities (Q800820)

In the last decade considerable attention has been paid to the analysis and optimization of multi-echelon assembly networks. Research contributions in this field are mainly focussed on the determination of optimal batch quantities. In this paper two other issues concerning multi-echelon assembly networks are also discussed. The first point concerns the notion of flexibility in assembly operations. Flexibility can be achieved by spending on assembly engineering to cut set-up costs. The second point has to do with design of multilevel assembly systems. Furthermore the notion of minimum network leadtime is introduced. This turns out to be (besides minimal average cost per period) a performance indicator of considerable importance. To conclude an existing Philips product (called MEDSYS) is presented in order to illustrate the ideas discussed in this paper.