Analysis of Customization Cost Structural Model Based on Supply Chain

Abstract:

Providing customization product with reasonable cost for customers is one of keys for enterprise to gain competition advantage, customized product’ cost depends on customization level and postponement strategy under supply chain. As to a kind of customization product consisting of multi modules with different customer order decoupling point(CODP), this paper builds a class push/pull supply chain pattern by combining postponement with the supply chain based on analyzing customized product’s logistics / production process and customers demand transfer process, and presents a customization cost structural model. The impact of different customization degree and postponement realization form on customized product’ holding cost and total cost is also analyzed respectively. This analysis and calculation of total cost through an algorithm are helpful to find the appropriate customization degree and the reasonable postponement strategy. At last, an illustrative example is given.

• Periodical: Advanced Materials Research (Volumes 139-141)
• Pages: 1654-1659
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.139-141.1654
• Online since: October 2010
• Authors: Zhi Liang Wang, Yun Xia Wang, Yun Lu
• Keywords: Cost, Customization Degree, Modularisation, Postponement, Supply Chain

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