We address an assembly problem, motivated by flat panel display manufa
cturing, where the quality (or performance) of the final product depen
ds upon characteristics of the components to be assembled, which are n
ot constant from component to component. We analyze the tradeoff betwe
en the increase in the potential value of products gained by putting o
ff the ''mating'' of components exhibiting various characteristic ''ty
pes,'' and the inventory costs caused by this delay in mating. We form
ulate this dynamic type mating problem as a Markov Decision Process an
d characterize the structure of the optimal policy for special cases.
We then present a heuristic policy for a more general case and compare
its performance against the optimal policy. Computational results ind
icate that the heuristic is effective for a wide variety of cases.