We consider a multi-product and multi-component Assemble-to-Order (ATO) system where the external demand follows compound Poisson processes and component inventories are controlled by continuous-time batch ordering policies. The replenishment lead-times of components are stochastic, sequential...

In many industries, customers are offered free shipping whenever an order placed exceeds a minimum quantity specified by suppliers. This allows the suppliers to achieve economies of scale in terms of production and distribution by encouraging customers to place large orders. In this paper, we...