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Evaluation of product-platform decisions based on total supply chain costs

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  • Maud Van den Broeke
  • Robert Boute
  • Behzad Samii

Abstract

Over the past decades, several companies have introduced product platforms in the design of their products in order to produce a large product variety in a cost-efficient way. However, for some companies, the introduction of platforms ended up being more costly than expected, leading them to reconsider their platform decisions. In this paper, we develop a model to support companies in determining (1) how many platforms to develop, (2) which platforms to develop and (3) which products to derive from which platforms. The model takes into account the impact of these product-platform decisions on a company’s relevant supply chain activities and costs. The model shows how the optimal product-platform decisions depend on the trade-off between the costs of platforms versus the costs of customising these platforms to final product variants. We propose a simulated annealing algorithm to solve large problem instances within reasonable time. The practical validity of our model is shown through its application in a global technology company specialised in the development and production of medical screens.

Suggested Citation

  • Maud Van den Broeke & Robert Boute & Behzad Samii, 2015. "Evaluation of product-platform decisions based on total supply chain costs," International Journal of Production Research, Taylor & Francis Journals, vol. 53(18), pages 5545-5563, September.
    • Handle: RePEc:taf:tprsxx:v:53:y:2015:i:18:p:5545-5563
    DOI: 10.1080/00207543.2015.1034329
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    Cited by:

    1. Van den Broeke, Maud & Boute, Robert & Cardoen, Brecht & Samii, Behzad, 2017. "An efficient solution method to design the cost-minimizing platform portfolio," European Journal of Operational Research, Elsevier, vol. 259(1), pages 236-250.
    2. Van den Broeke, Maud M. & Boute, Robert N. & Van Mieghem, Jan A., 2018. "Platform flexibility strategies: R&D investment versus production customization tradeoff," European Journal of Operational Research, Elsevier, vol. 270(2), pages 475-486.
    3. Jalali, Hamed & Van den Broeke, Maud & Van Nieuwenhuyse, Inneke, 2022. "Platform and product design for markets with quality and feature sensitive customers," International Journal of Production Economics, Elsevier, vol. 244(C).
    4. Mei, Qihuang & Li, Jianbin & Ursavas, Evrim & Zhu, Stuart X. & Luo, Xiaomeng, 2021. "Freight transportation planning in platform service supply chain considering carbon emissions," International Journal of Production Economics, Elsevier, vol. 240(C).
    5. Robert N. Boute & Maud M. Van den Broeke & Kristof A. Deneire, 2017. "Barco Implements Platform-Based Product Development in Its Healthcare Division," Decision Analysis, INFORMS, vol. 48(01), pages 35-44, February.
    6. Xiong, Yixuan & Du, Gang & Jiao, Roger J., 2018. "Modular product platforming with supply chain postponement decisions by leader-follower interactive optimization," International Journal of Production Economics, Elsevier, vol. 205(C), pages 272-286.

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