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A note on parts inventory and mass customization for a two-stage JIT supply chain with zero-one type of bills of materials

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  • H Aigbedo

    (Oakland University)

Abstract

Mass customizing products for customers in some industries has recently been on the increase. The determination of a sequence schedule for a just-in-time supply chain with an assembly system that makes such products typically aims at minimizing variation in the usage of parts. In many cases, the bills of materials are of a 0–1 type. Based on an objective function often used for smoothing parts usage in practice, we theoretically derive a lower bound on inventory deviation, carry out some associated analyses, and provide useful insights. For example, we find that increasing the degree of mass customization tends to increase the inventory levels of relevant parts in the system. This has practical implications for managing parts with multiple variants in the above environment.

Suggested Citation

  • H Aigbedo, 2009. "A note on parts inventory and mass customization for a two-stage JIT supply chain with zero-one type of bills of materials," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(9), pages 1286-1291, September.
    • Handle: RePEc:pal:jorsoc:v:60:y:2009:i:9:d:10.1057_palgrave.jors.2602640
    DOI: 10.1057/palgrave.jors.2602640
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    References listed on IDEAS

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    1. John Miltenburg, 1989. "Level Schedules for Mixed-Model Assembly Lines in Just-In-Time Production Systems," Management Science, INFORMS, vol. 35(2), pages 192-207, February.
    2. Alford, Dave & Sackett, Peter & Nelder, Geoff, 2000. "Mass customisation -- an automotive perspective," International Journal of Production Economics, Elsevier, vol. 65(1), pages 99-110, April.
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    Cited by:

    1. Fogliatto, Flavio S. & da Silveira, Giovani J.C. & Borenstein, Denis, 2012. "The mass customization decade: An updated review of the literature," International Journal of Production Economics, Elsevier, vol. 138(1), pages 14-25.
    2. Bautista, Joaquín & Cano, Alberto, 2011. "Solving mixed model sequencing problem in assembly lines with serial workstations with work overload minimisation and interruption rules," European Journal of Operational Research, Elsevier, vol. 210(3), pages 495-513, May.

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