Abstract
Platforming is not only a powerful approach to new product development by sharing common and modular components and processes but also allows the supply chain to gain benefits from risk-pooling effect through shared resources. Analytical target cascading (ATC) is a decentralised method suitable for configuring a hierarchical supply chain of an assembled product while accommodating necessary degree of decision autonomy and information privacy of individual enterprises. Because product variants in a family share platform components, the supply chain structure becomes a weakly networked hierarchy where a small number of elements are laterally linked. In addition, multiple customers who share a common platform component may require the corresponding supplier to use different strategies such as just-in-time (JIT) and lowest price to supply the component. As a result, different decision variables may be involved in the interaction between a shared lower-level element and its different parental elements. This paper develops a new ATC method suitable for dealing with these two special characteristics in supply chain configuration (SCC) for a product family. Numerical results demonstrate that the new method produces better results than those obtained from using the ATC method that only allows a supplier to optimise the supply of the platform component to all its customers with the same strategy.
Original language | English |
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Pages (from-to) | 1012-1023 |
Number of pages | 12 |
Journal | International Journal of Computer Integrated Manufacturing |
Volume | 22 |
Issue number | 11 |
DOIs | |
Publication status | Published - Nov 2009 |
Externally published | Yes |
Keywords
- Analytical target cascading
- Product family
- Product platform
- Supply chain configuration
ASJC Scopus subject areas
- Mechanical Engineering
- Computer Science Applications
- Industrial and Manufacturing Engineering