Adaptive Strategies for Coping with Product Variety
Decisions

Yeh, Kun‐Huang; Chu, Chenhui

doi:10.1108/eum0000000001279

Cited by 37 publications

(29 citation statements)

References 5 publications

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“…Product variety is said to be one of the most distinguishing characteristics of industrial markets and is seen as playing a central role in marketing strategies such as product proliferation, market segmentation, mass customisation and niche marketing (Bayus andPutis 1999, Berry andCooper 1999). The reasons given in the literature for the emergence of the strategic importance of product variety (Da Silveira 1998) read very similarly to the reasons given in the literature for the focus on manufacturing flexibility, outlined above: intensive global competition, rapidly changing technologies and sophisticated consumers, with fast-changing tastes (Yeh andChu 1991, Ramdas 2003). This close association between product variety and manufacturing flexibility is especially exemplified by one type of flexibility: mix flexibility.…”

Section: Introduction To MIX Flexibilitymentioning

confidence: 86%

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The role of resource configuration on mix flexibility requirements

Wilson

Platts

2009

Production Planning & Control

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Uncertainty and variety have been established as the fundamental reasons for needing manufacturing flexibility at a plant level. However, the sole focus on uncertainty and variety often leads to the neglect of factors that influence flexibility requirements at the system and resource levels. To address this neglect, this article considers the role of manufacturing resource configuration in influencing the need for mix flexibility. This article begins by revisiting literature that reviews the plant level drivers for needing mix flexibility. These relationships are captured in a preliminary framework. Subsequently, by applying constructs from Coordination Theory, the role of manufacturing resource configuration in influencing mix flexibility requirements is outlined. The preliminary framework is then revised and tested via a case study. The article concludes by arguing that the traditional focus on plant level factors influencing mix flexibility requirements should be expanded to consider the role of manufacturing resource configuration in influencing mix flexibility requirements at the system and resource levels.

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Section: Introduction To MIX Flexibilitymentioning

confidence: 86%

“…In terms of advantages, the range of products manufactured by firms is seen as an integral part of markets and can be used by companies to increase market share, to increase responsiveness to customer needs and to decrease sales uncertainty (Yeh andChu 1991, Berry andCooper 1999). …”

Section: Production Planning and Control 773mentioning

confidence: 99%

The role of resource configuration on mix flexibility requirements

Wilson

Platts

2009

Production Planning & Control

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“…However, product variety has a considerably lesser impact on direct costs and manufacturing costs (Kekre and Srinivasan 1990) provided contemporary technology and sophisticated operations management are employed (Tang and Yam 1996). If there is no increase in machine capacity, lot sizes must be reduced to meet the greater variety of customer needs and the set-up cost will increase (Yeh and Chu 1991). Furthermore, the stated part and process variety will increase unavoidably.…”

Section: Background Theory and Literature Review 21 Variety Managementmentioning

confidence: 96%

The application of a knowledge-based reference framework to support the provision of requisite variety and customisation across collaborative networks

Lyons

Everington

Hernández

et al. 2013

International Journal of Production Research

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The research described in this paper demonstrates how individual operational capabilities and the collective knowledge and expertise of a collaborative customer-supplier network can be harnessed to manage the challenges associated with the provision of a requisite level of product variety and customisation. It concerns the discussion and application of a previously published approach to the classification of collaborative networks, the justification of the extension to this approach and the use of the approach as a knowledge-based reference framework to demonstrate how product variety and customisation can be supported across different forms of collaborative customer-supplier networks. In addition, explanations are provided on how collaborative networks can be classified, on how their adaptive capabilities can be established, and on the characteristics and attributes that particular types of network require in order to handle their commitment to the provision of variety and customisation. IntroductionContinued success for many businesses is predicated on their ability to innovate new ideas and introduce new products. Global competition and the search for growth have created a business environment where sales can be rarely increased from a fixed range of products or markets. More often, sales growth is dependent on the ability of a business to stimulate an existing market or penetrate a different one by offering new choices. Consequently, product development has become more rapid, manufacturing systems have become more flexible and product proliferation and variety continue to increase. Differentiation of products has gone beyond the simple and prosaic categories of age, size, and gender to include regional and national tastes, aesthetics, and personal attributes and lifestyle. The management of the complexity associated with wide product diversity is often dependent on harnessing the knowledge and cooperative efforts of the members of a collaborative network (CN). This paper focuses on the utilisation of shared information and knowledge and the operational know-how involved in managing product variety across collaborative customer-supplier networks. More specifically, the aim of this research is to attempt to support decision-making in CNs by demonstrating how the effective execution of appropriate sales, production and supply-chain policies within and between network partners can be used to support the efficiency of the processes associated with the management of product variety. In addition, explanations are provided on how CNs can be classified, how their adaptive capabilities can be established and on how the characteristics and attributes that particular types of network require in order to handle their commitment to the provision of variety and customisation.Previous research on knowledge management in networks or supply chains is limited but where it does exist it has tended to focus on how (explicit) knowledge can be used to improve performance. Examples include Yuva (2002) and Wadhwa and Saxena (2005). T...

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“…Several studies agree that broadening the product line increases a company's power to compete in the market. Although this leads to a higher market share and performance (see e.g., Kekre & Srinivasan, 1990;Tang & Yam, 1996;Yeh & Chu, 1991), a company may also lose its cost advantage at the same time. This situation might seem somewhat contradictory to the observation of Kekre and Srinivasan (1990) in that broadening the product line also increases the profitability.…”

Section: Introductionmentioning

confidence: 97%