On Postponed Production Optimization for Two-stage Supply Chain in Mass Customization
Cost models were built for both traditional supply chain environment and mass customization environment. Then, the queuing theory of extending M/M/1 model is used to optimize the total cost. Through simulations, the lowest cost for both situations was explored, and the results show that retailer\'s ordering strategy as well as the location of the CODP has significant influence on the total cost. It can provide theoretical support for manufacturers to locate the CODP point correctly, and also provide a basis for making a decision in implementing postponed strategy for manufacturers.
Keywords: Postponed production, Supply chain, Cost Optimization, Queuing Theory, Customer order decoupling point
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ABOUT THE AUTHORS
Guangxing Wei
School of Management, Chongqing Jiaotong University Chongqing, 400074, China
Danping Xiong
School of Management, Chongqing Jiaotong University Chongqing, 400074, China
Guangxing Wei
School of Management, Chongqing Jiaotong University Chongqing, 400074, China
Danping Xiong
School of Management, Chongqing Jiaotong University Chongqing, 400074, China
