Inventory Management in Mass Customization Operations: A Review

Mass customization (MC), as an operations program to satisfy target consumers by offering personalized products or services, has attracted substantial attention from both the industry and academia. Under this program, one of the most important issues is an efficient management of the related inventories, including the work-in-process inventories, standard items, and the customized items, which can ultimately contribute to a profitable business for the companies who have launched MC. This paper, therefore, focuses on reviewing the mass customization based literature and identifying various methods to effectively manage inventory for MC schemes. In addition to regular inventory management, with the increasing emphasis on corporate social responsibility, MC companies are required to devote more effort to the proper management of leftover and returned inventories under MC. This paper, hence, examines MC inventory management in both forward and reverse logistics. Findings from this review provide a guideline to operations managers on inventory management improvement in their MC operations. Future research opportunities related to MC inventory management, such as supply chain coordination and risk management, are discussed.