IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v36y2008i5p852-864.html
   My bibliography  Save this article

An economic evaluation model of product mix flexibility

Author

Listed:
  • Gong, Zhejun
  • Hu, Sun

Abstract

This paper develops a product mix flexibility model comprising labor flexibility, machine flexibility, routing flexibility, and information technology, with the product mix flexibility measured by an economic index. Outputs from the model can be useful in making suitable production decisions to produce multiple products in an uncertain environment. Example solutions are given. How the product mix flexibility is affected by flexibility factors is discussed, and the results show that the bottleneck plays the most important role. This paper can help economic evaluation when product mix flexibility and the factors affecting flexibility are to be improved. It can also assist in making enterprise flexibility promotion decisions.

Suggested Citation

  • Gong, Zhejun & Hu, Sun, 2008. "An economic evaluation model of product mix flexibility," Omega, Elsevier, vol. 36(5), pages 852-864, October.
    • Handle: RePEc:eee:jomega:v:36:y:2008:i:5:p:852-864
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305-0483(06)00037-5
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. James Richardson, 1996. "Vertical Integration and Rapid Response in Fashion Apparel," Organization Science, INFORMS, vol. 7(4), pages 400-412, August.
    2. Bengtsson, Jens & Olhager, Jan, 2002. "The impact of the product mix on the value of flexibility," Omega, Elsevier, vol. 30(4), pages 265-273, August.
    3. Beach, R. & Muhlemann, A. P. & Price, D. H. R. & Paterson, A. & Sharp, J. A., 2000. "A review of manufacturing flexibility," European Journal of Operational Research, Elsevier, vol. 122(1), pages 41-57, April.
    4. Chandra, Charu & Everson, Mark & Grabis, Janis, 2005. "Evaluation of enterprise-level benefits of manufacturing flexibility," Omega, Elsevier, vol. 33(1), pages 17-31, February.
    5. Mandelbaum, Marvin & Buzacott, John, 1990. "Flexibility and decision making," European Journal of Operational Research, Elsevier, vol. 44(1), pages 17-27, January.
    6. Golden, William & Powell, Philip, 2000. "Towards a definition of flexibility: in search of the Holy Grail?," Omega, Elsevier, vol. 28(4), pages 373-384, August.
    7. Chandra, Pankaj & Tombak, Mihkel M., 1992. "Models for the evaluation of routing and machine flexibility," European Journal of Operational Research, Elsevier, vol. 60(2), pages 156-165, July.
    8. Boyer, Kenneth K. & Leong, G. Keong, 1996. "Manufacturing flexibility at the plant level," Omega, Elsevier, vol. 24(5), pages 495-510, October.
    9. Gaimon, Cheryl & Singhal, Vinod, 1992. "Flexibility and the choice of manufacturing facilities under short product life cycles," European Journal of Operational Research, Elsevier, vol. 60(2), pages 211-223, July.
    10. Braglia, Marcello & Petroni, Alberto, 2000. "Towards a taxonomy of search patterns of manufacturing flexibility in small and medium-sized firms," Omega, Elsevier, vol. 28(2), pages 195-213, April.
    11. Paul M. Swamidass & William T. Newell, 1987. "Manufacturing Strategy, Environmental Uncertainty and Performance: A Path Analytic Model," Management Science, INFORMS, vol. 33(4), pages 509-524, April.
    12. Shuiabi, Eyas & Thomson, Vince & Bhuiyan, Nadia, 2005. "Entropy as a measure of operational flexibility," European Journal of Operational Research, Elsevier, vol. 165(3), pages 696-707, September.
    13. Donald Gerwin, 1993. "Manufacturing Flexibility: A Strategic Perspective," Management Science, INFORMS, vol. 39(4), pages 395-410, April.
    14. Wang, Reay-Chen & Chuu, Shian-Jong, 2004. "Group decision-making using a fuzzy linguistic approach for evaluating the flexibility in a manufacturing system," European Journal of Operational Research, Elsevier, vol. 154(3), pages 563-572, May.
    15. De Leeuw, A. C. J. & Volberda, H. W., 1996. "On the concept of flexibility: A dual control perspective," Omega, Elsevier, vol. 24(2), pages 121-139, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zheng-Yun Zhuang & Shu-Chin Chang, 2017. "Deciding product mix based on time-driven activity-based costing by mixed integer programming," Journal of Intelligent Manufacturing, Springer, vol. 28(4), pages 959-974, April.
    2. Seebacher, Gottfried & Winkler, Herwig, 2014. "Evaluating flexibility in discrete manufacturing based on performance and efficiency," International Journal of Production Economics, Elsevier, vol. 153(C), pages 340-351.
    3. Wen-Hsien Tsai & Jui-Chu Chang & Chu-Lun Hsieh & Tsen-Shu Tsaur & Chung-Wei Wang, 2016. "Sustainability Concept in Decision-Making: Carbon Tax Consideration for Joint Product Mix Decision," Sustainability, MDPI, vol. 8(12), pages 1-22, November.
    4. Dipankar Bose & A. K. Chatterjee & Samir Barman, 2016. "Towards dominant flexibility configurations in strategic capacity planning under demand uncertainty," OPSEARCH, Springer;Operational Research Society of India, vol. 53(3), pages 604-619, September.
    5. Wang, John & Yan, Ruiliang & Hollister, Kimberly & Zhu, Dan, 2008. "A historic review of management science research in China," Omega, Elsevier, vol. 36(6), pages 919-932, December.
    6. Hallgren, Mattias & Olhager, Jan, 2009. "Flexibility configurations: Empirical analysis of volume and product mix flexibility," Omega, Elsevier, vol. 37(4), pages 746-756, August.
    7. Hasuike, Takashi & Ishii, Hiroaki, 2009. "On flexible product-mix decision problems under randomness and fuzziness," Omega, Elsevier, vol. 37(4), pages 770-787, August.
    8. Hua, Zhongsheng & Zhang, Xuemei & Xu, Xiaoyan, 2011. "Product design strategies in a manufacturer-retailer distribution channel," Omega, Elsevier, vol. 39(1), pages 23-32, January.
    9. Nielsen Peter & Do Ngoc Anh Dung & Eriksen Thomas & Nielsen Izabela, 2014. "Towards an Analysis Methodology for Identifying Root Causes of Poor Delivery Performance," Foundations of Management, Sciendo, vol. 6(2), pages 31-42, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gong, Zhejun, 2008. "An economic evaluation model of supply chain flexibility," European Journal of Operational Research, Elsevier, vol. 184(2), pages 745-758, January.
    2. Hallgren, Mattias & Olhager, Jan, 2009. "Flexibility configurations: Empirical analysis of volume and product mix flexibility," Omega, Elsevier, vol. 37(4), pages 746-756, August.
    3. Beach, R. & Muhlemann, A. P. & Price, D. H. R. & Paterson, A. & Sharp, J. A., 2000. "A review of manufacturing flexibility," European Journal of Operational Research, Elsevier, vol. 122(1), pages 41-57, April.
    4. Chang, Shih-Chia & Yang, Chen-Lung & Cheng, Hsin-Chia & Sheu, Chwen, 2003. "Manufacturing flexibility and business strategy: An empirical study of small and medium sized firms," International Journal of Production Economics, Elsevier, vol. 83(1), pages 13-26, January.
    5. Moon, Karen Ka-Leung & Yi, Candace Ying & Ngai, E.W.T., 2012. "An instrument for measuring supply chain flexibility for the textile and clothing companies," European Journal of Operational Research, Elsevier, vol. 222(2), pages 191-203.
    6. Chuu, Shian-Jong, 2011. "Interactive group decision-making using a fuzzy linguistic approach for evaluating the flexibility in a supply chain," European Journal of Operational Research, Elsevier, vol. 213(1), pages 279-289, August.
    7. Chang, An-Yuan, 2009. "An attribute approach to the measurement of machine-group flexibility," European Journal of Operational Research, Elsevier, vol. 194(3), pages 774-786, May.
    8. Enrico Teich & Thorsten Claus, 2017. "Measurement of Load and Capacity Flexibility in Manufacturing," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 18(4), pages 291-302, December.
    9. Yu, Kangkang & Cadeaux, Jack & Luo, Ben Nanfeng, 2015. "Operational flexibility: Review and meta-analysis," International Journal of Production Economics, Elsevier, vol. 169(C), pages 190-202.
    10. Pereira, Javier & Paulre, Bernard, 2001. "Flexibility in manufacturing systems: A relational and a dynamic approach," European Journal of Operational Research, Elsevier, vol. 130(1), pages 70-82, April.
    11. Wahab, M.I.M. & Stoyan, S.J., 2008. "A dynamic approach to measure machine and routing flexibilities of manufacturing systems," International Journal of Production Economics, Elsevier, vol. 113(2), pages 895-913, June.
    12. Dipankar Bose & A. K. Chatterjee & Samir Barman, 2016. "Towards dominant flexibility configurations in strategic capacity planning under demand uncertainty," OPSEARCH, Springer;Operational Research Society of India, vol. 53(3), pages 604-619, September.
    13. Francas, David & Kremer, Mirko & Minner, Stefan & Friese, Markus, 2009. "Strategic process flexibility under lifecycle demand," International Journal of Production Economics, Elsevier, vol. 121(2), pages 427-440, October.
    14. Chandra, Charu & Everson, Mark & Grabis, Janis, 2005. "Evaluation of enterprise-level benefits of manufacturing flexibility," Omega, Elsevier, vol. 33(1), pages 17-31, February.
    15. Tamayo-Torres, Javier & Gutierrez-Gutierrez, Leopoldo & Ruiz-Moreno, Antonia, 2014. "The relationship between exploration and exploitation strategies, manufacturing flexibility and organizational learning: An empirical comparison between Non-ISO and ISO certified firms," European Journal of Operational Research, Elsevier, vol. 232(1), pages 72-86.
    16. Braglia, Marcello & Petroni, Alberto, 2000. "Towards a taxonomy of search patterns of manufacturing flexibility in small and medium-sized firms," Omega, Elsevier, vol. 28(2), pages 195-213, April.
    17. Wang, Reay-Chen & Chuu, Shian-Jong, 2004. "Group decision-making using a fuzzy linguistic approach for evaluating the flexibility in a manufacturing system," European Journal of Operational Research, Elsevier, vol. 154(3), pages 563-572, May.
    18. Golden, William & Powell, Philip, 2000. "Towards a definition of flexibility: in search of the Holy Grail?," Omega, Elsevier, vol. 28(4), pages 373-384, August.
    19. Zhang, Qingyu & Vonderembse, Mark A. & Cao, Mei, 2009. "Product concept and prototype flexibility in manufacturing: Implications for customer satisfaction," European Journal of Operational Research, Elsevier, vol. 194(1), pages 143-154, April.
    20. Jha, Pradeep K. & Jha, Rakhi & Datt, Rajul & Guha, Sujoy K., 2011. "Entropy in good manufacturing system: Tool for quality assurance," European Journal of Operational Research, Elsevier, vol. 211(3), pages 658-665, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:36:y:2008:i:5:p:852-864. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.