Coordination in decentralized assembly systems with uncertain component yields

  title={Coordination in decentralized assembly systems with uncertain component yields},
  author={Haresh Gurnani and Yigal Gerchak},
  journal={European Journal of Operational Research},
The literature on assembly systems with random component yields has focused on centralized systems, where a single decision maker chooses all components’ production quantities and incurs all the costs. We consider a decentralized setting where the component suppliers choose their production quantities based solely on their own cost/reward structure, and the assembly firm makes ordering decisions based on its own cost/reward structure. When the suppliers control their inputs but the outputs… CONTINUE READING
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