A general solution framework for component commonality problems

Nils Boysen () and Armin Scholl ()
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Nils Boysen: School of Economics and Business Administration, Friedrich-Schiller-University Jena

No 12/2008, Jena Research Papers in Business and Economics - Working and Discussion Papers (Expired!) from Friedrich Schiller University Jena, School of Economics and Business Administration

Abstract: Component commonality, the use of the same version of a component across multiple products, is increasingly considered as a promising way to offer high external variety while retaining low internal variety in operations. However, increasing commonality has both positive and negative cost effects, so that optimization approaches are required to identify an optimal commonality level. As a more or less of components influences nearly every process step along the supply chain, it is not astounding that a multitude of diverging commonality problems is investigated in literature, each of which developing a specific algorithm designed for the respective commonality problem considered. The paper on hand aims at a general framework, flexible and effcient enough to be applied to a wide range of commonality problems. Such a procedure basing on a two-stage graph approach is presented and tested. Finally, flexibility of the procedure is shown by customizing the framework to account for different types of commonality problems.

Keywords: Product variety; Component commonality; Optimization; Graph approach (search for similar items in EconPapers)
Date: 2008
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Published in: BuR - Business Research 2/1 (2009), 86-106.

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Persistent link: https://EconPapers.repec.org/RePEc:jen:jenjbe:2008-12

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