Aligning demand and supply flexibility in custom product co-design

Aligning demand and supply flexibility in custom product co-design

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Article ID: iaor20091039
Country: United States
Volume: 19
Issue: 4
Start Page Number: 596
End Page Number: 611
Publication Date: Jan 2007
Journal: International Journal of Flexible Manufacturing Systems
Authors: ,
Keywords: programming: goal
Abstract:

Flexibility of supply and demand is essential for successful implementation of a mass customization strategy that delivers sustained competitive advantage. Supply flexibility, i.e., a choice of alternative products designed to perform the same basic function, is made possible by the range of capabilities available in flexible and agile manufacturing systems and in supply chains. Demand flexibility is derived from the degree to which a customer is willing to compromise on product features or performance levels in order to meet budgetary (reflected in price) or schedule (reflected in delivery) constraints. Flexibility of both supply and demand can have significant strategic and financial value if they are properly aligned. However, customers are mostly unaware of mapping of demand flexibility on to supply flexibility and its impact on production cost and time. Recent advances in information technology have made it possible to co-design a product that involves customer on one end and the manufacturer on the other.

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