Optimal planning mechanisms for assemble-to-order manufacturing: time and money criteria

The problem is studied of raw material inventory optimization in companies, which manufacture consumer goods for market of limited volume. We analyze factors leading to the use of the assemble-to-order planning policy in firms, which compete on oligopsony markets, and suggest optimization models of procurement order planning either to maximize profit or to minimize the operation/manufacturing cycle under the monotonic increase of costs, revenue, and cash flow. The model takes into account price and technology constraints. We design analytical mechanisms of optimal order planning for bearing industry and model the region of compromise for orders being extremal with respect to different criteria.