Joint optimization for coordinated configuration of product families and supply chains by a leader-follower Stackelberg game

Dong Yang, Jiao, Jianxin (Roger), Yangjian Ji, Gang Du, Petri Helo and Anna Valente

European Journal of Operational Research, 2015, vol. 246, issue 1, 263-280

Abstract: Product family design by module configuration is conducive to accommodating product variety while maintaining mass production efficiency. Effective fulfillment of product families necessitates joint decision making of product family configuration (PFC) and downstream supply chain configuration (SCC), due to nowadays manufacturers’ moving towards assembly-to-order production throughout a distributed supply chain network. Existing decision models for joint optimization of product family and supply chain configuration are originated from an “all-in-one” approach that assumes both PFC and SCC decisions can be integrated into one optimization problem by aggregating two different types of objectives into a single objective function. Such an assumption neglects the complex tradeoffs underlying two different decision making problems and fails to reveal the inherent coupling of PFC and SCC.

Keywords: Product family; Supply chain; Module configuration; Stackelberg game; Bi-level optimization (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:246:y:2015:i:1:p:263-280

DOI: 10.1016/j.ejor.2015.04.022

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