EconPapers    
Economics at your fingertips  
 

Bilevel joint optimisation for product family architecting considering make-or-buy decisions

Xiaojie Liu, Gang Du and Roger J. Jiao

International Journal of Production Research, 2017, vol. 55, issue 20, 5916-5941

Abstract: Product family architecting (PFA) aims at identification of common modules and selective modules to enable product family configuration for mass customisation. Due to nowadays manufacturers moving more towards assembly-to-order production throughout a distributed supply chain, the common practice of outsourcing of certain modules entails make-or-buy (MOB) decisions that must be taken into account in PFA. While the PFA and MOB decisions are enacted for different concerns of the manufacturer and the suppliers, it is important to deal with joint optimisation of the PFA and MOB problems. The prevailing decision models for joint optimisation are mainly originated from an ‘all-in-one’ approach that assumes both PFA and MOB decisions can be integrated into one single-level optimisation problem. Such an assumption neglects the complex trade-offs underlying two different decision-making problems and fails to reveal the inherent coupling of PFA and MOB decisions. This paper proposes to formulate joint optimisation of the PFA and MOB problems as a Stackelberg game, in which a bilevel decision mechanism model is deployed to reveal the inherent coupling and hierarchical relationships between PFA and MOB decisions. A nonlinear bilevel optimisation model is developed with the PFA problem acting as the leader and each MOB problem performing as a follower. A nested genetic algorithm is developed to solve the bilevel optimisation model. A case study of power transformer PFA subject to MOB considerations is presented to illustrate the feasibility and effectiveness of bilevel joint optimisation.

Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1080/00207543.2017.1304666 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:tprsxx:v:55:y:2017:i:20:p:5916-5941

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TPRS20

DOI: 10.1080/00207543.2017.1304666

Access Statistics for this article

International Journal of Production Research is currently edited by Professor A. Dolgui

More articles in International Journal of Production Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2025-03-20
Handle: RePEc:taf:tprsxx:v:55:y:2017:i:20:p:5916-5941