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Coordination of Product Variety and Delayed Product Differentiation  

Lee Ho-Chang (경희대학교 경영학부)
Publication Information
Journal of the Korean Operations Research and Management Science Society / v.31, no.2, 2006 , pp. 57-67 More about this Journal
Abstract
One of challenging issues of market oriented manufacturing organization is product proliferation. However, increasing product variety not only incurs additional direct and indirect production cost, but also aggravates production system performance such as inventory level, customer lead time and fill rate. Recently, as one of the most beneficial strategic choices to menage the risks associateed with product variety and uncertain sales, special attention is focused on the product/process redesign to delayed product differentiation. In this paper, we develop an analytical model to demonstrate the existence of an optimal level of product differentiation, which can be used to provide theoretical basis in establishing market oriented SCM strategy.
Keywords
Product Variety; Delayed Product Differentiation; SCM; Product Proliferation; Market Oriented Manufacturing Organization;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
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