Late customization strategy with service levels requirements

Late customization strategy with service levels requirements

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Article ID: iaor201527132
Volume: 166
Issue: 2
Start Page Number: 72
End Page Number: 84
Publication Date: Aug 2015
Journal: International Journal of Production Economics
Authors: , , , ,
Keywords: service, inventory
Abstract:

  • We model the inventory‐service level trade‐off in delayed product customization.
  • A Bayesian Belief method to locate the point of production differentiation is proposed.
  • The service levels decrease with upstream product movement in the production network.
  • The service level requirements effect a product differentiation deferment.
  • The customization process tend to be less expensive in non‐decouple systems.

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