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Akçay and Xu (Manag Sci 50(1):99–116, 2004) studied a periodic review assemble-to-order (ATO) system with an independent base stock policy and a first-come-first-served allocation rule, where the base stock levels and the component allocation are optimized jointly. The formulation is non-convex and, thus theoretically and computationally challenging. In their computational experiments, Akçay and Xu...
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