Integrating decisions with advance supply information in an assemble‐to‐order system

Abstract We study a periodic‐review assemble‐to‐order (ATO) system with multiple components and multiple products, in which the inventory replenishment for each component follows an independent base‐stock policy and stochastic product demands are satisfied according to a First‐Come‐First‐Served rule. We assume that the replenishment for various component suffers from lead time uncertainty. However, the decision maker has the so‐called advance …