We study a hybrid strategy that uses both process flexibility and finished goods inventory for supply chain risk mitigation. The interplay between process flexibility and inventory is modeled as a two-stage robust optimization problem. In the first stage, the firm allocates inventory before...

We review the recent academic literature on Assemble-to-Order (ATO) systems, which stock inventory of components that are then assembled into final products upon receipt of customer demand. The key feature of such systems, component commonality (i.e., products may share common components),...