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Requirements planning for modular products
Author(s) -
Paul Anand,
Vakharia Asoo J.
Publication year - 2006
Publication title -
naval research logistics (nrl)
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.665
H-Index - 68
eISSN - 1520-6750
pISSN - 0894-069X
DOI - 10.1002/nav.20149
Subject(s) - component (thermodynamics) , modular design , computer science , service (business) , product (mathematics) , set (abstract data type) , focus (optics) , operations research , simple (philosophy) , mathematical optimization , risk analysis (engineering) , business , mathematics , marketing , philosophy , epistemology , physics , geometry , optics , thermodynamics , programming language , operating system
The focus of this paper is on determining the requirements of different component options of a modular end‐product in an uncertain environment. We explicitly model two distinct sources of uncertainty: stochastic end‐product demand and unknown market proportions for the different product options available. Our cost minimizing model focuses on determining the optimal requirements policies for component options that meet a pre‐set service level. We show that simple common‐sense requirements policies are not generally optimal; there is a non‐linear connection between service level and component requirements that is hard to characterize without a detailed analysis. © 2006 Wiley Periodicals, Inc. Naval Research Logistics, 2006