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| Tekijä: | Thonemann, U. W. Bradley, J. R. |
| Otsikko: | The effect of product variety on supply-chain performance |
| Lehti: | European Journal of Operational Research
2002 : DEC, VOL. 143:3, p. 548-569 |
| Asiasana: | SUPPLY CHAIN MANAGEMENT INVENTORIES PRODUCTION PRODUCT VARIETY OPTIMIZATION |
| Kieli: | eng |
| Tiivistelmä: | The authors present a stylized model for analyzing the effect of product variety on supply-chain performance for a supply chain with a single manufacturer and multiple retailers. The manufacturer produces multiple products on a shared resource with limited capacity and the effect of changeovers on supply-chain cost is due primarily to setup time rather than setup cost. The authors show that the expected replenishment lead time and the retailers' costs are concave increasing in product variety and that the increase is asymptotically linear. Thus, if setup times are significant, the effect of product variety on cost is substantially greater than that suggested by the risk- pooling literature for perfectly flexible manufacturing processes, where the cost increases proportionally to the square root of product variety. |
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