The Role of Component Commonality in Product Assortment Decisions

Bernstein, Fernando; Kok, A.G. de; Xie, Lei

doi:10.1287/msom.1100.0317

Cited by 21 publications

(12 citation statements)

References 18 publications

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“…A simulation model t h a t a l l o w s e x a m i n i n g t h e d y n a m i c s b e t w e e n modularization, innovation, and performance in complex systems was developed [125]. Other study investigated the effect of commonality (common components/modules) in relation to product variety and compared their benefits under different demand characteristics [126]. Gupta and Roth [127] discussed the contributions of Martin K. Starr to production and operations management, which include the seminal approach of modular production, described in Starr [8].…”

Section: Studies Of Brazilian Journals and Other Investigationsmentioning

confidence: 99%

Modularization strategy: analysis of published articles on production and operations management (1999 to 2013)

Piran

Lacerda

Antunes

et al. 2015

Int J Adv Manuf Technol

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The objective of this study was to analyze the main topics studied on the subject of modularization in 81 academic articles published between 1999 and 2013 in international and Brazilian journals that include research related to production and operations management. This analysis proposes a general framework of studies that serves as support for future research on modularization strategy. To fulfill the proposed objective, a systematic literature review was conducted using 10 international academic journals and two Brazilian academic journals that publish studies on the study topic. The main results include identifying the lack of studies on the background that leads to modularization, the lack of empirical and quantitative studies on its effects, and the use of modularization in the organizational, service, and environmental contexts. The present study also organizes modularization studies in the proposed conceptual structure and classifies the articles analyzed into a specific modularization taxonomy and in terms of the study's objective.Keywords Modularity . Modularization . Modular . Module . Modularity in design . Modularity in production . Modularity in use . Organizational modularity . Modularity in services

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Section: Studies Of Brazilian Journals and Other Investigationsmentioning

confidence: 99%

Modularization strategy: analysis of published articles on production and operations management (1999 to 2013)

Piran

Lacerda

Antunes

et al. 2015

Int J Adv Manuf Technol

View full text Add to dashboard Cite

show abstract

“…Under the assumption that all variants have an identical newsvendor ratio, van Ryzin and Mahajan demonstrated that the optimal assortment should consist of a certain number of the most popular variants. Subsequent research extended the analysis to study how the retailer's assortment decisions could be affected by component commonality (Bernstein et al., ), category captainship (Kurtulus & Nakkas, ), or endogenous pricing (Maddah & Bish, ; Aydin & Porteus, ). Several other studies took a different route by relaxing the assumption of an identical newsvendor ratio.…”

Section: Related Literaturementioning

confidence: 99%

Designing Multi‐Attribute Procurement Mechanisms for Assortment Planning

Shao

Sun

2015

Decision Sciences

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This research investigates how to design procurement mechanisms for assortment planning. We consider that a retailer buys directly from a manufacturer who possesses private information about the per-unit variable cost and per-variety setup cost. We first develop a screening model to assist the retailer in integrating assortment planning into supply chain contracting processes when only one manufacturer is available. We demonstrate that the screening mechanism is optimal among all feasible procurement strategies. When there are multiple competing manufacturers, we propose a supply contract auctioning mechanism and evaluate its performance. In this mechanism, the retailer announces a contract menu and the manufacturer that bids the highest upfront fee paid to the retailer wins the auction. The winner then chooses and executes a contract from the contract menu. We show that when the retailer uses the optimal screening contract menu as the object of the auction, it achieves the optimal procurement outcome if the screening contract menu does not pay rent to any manufacturer type. This finding sheds light on the connection between screening and auction mechanisms when there exists multi-dimensional private information.

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“…We assume two components or sub-assemblies are required in the product's assembly process, which is commonly considered to simplify the problem in the assembly system (see Bernstein, Kök, and Xie 2011;Gurnani and Gerchak 2007;Thomas, Warsing, and Zhang 2009;Yano 1987). The requested quantity of each component for the final product is assumed to be one unit.…”

Section: Problem Description and Notationsmentioning

confidence: 99%

The role of spot market in a decentralised supply chain under random yield

Yin

Guan

2013

International Journal of Production Research

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We consider a decentralised supply chain with demand uncertainty, wherein a manufacturer sells a single product that consists of two components to the end consumer through an independent distributor. Assume that one component has a random yield, the manufacturer may rely on the spot market to replenish any shortage components after the random yield is realised. We identify the optimal product order, component production and replenishment decisions under two different situations. One is the traditional arrangement that the distributor decides the product procurement quantity and the manufacturer chooses the production quantity. The other is vendor-managed inventory (VMI) arrangement in which the manufacturer is responsible for both the order and the production decisions. The results show that the role of spot market can effectively offset the negative effects from production yield's, market demand's and component spot price's variances. Consequently, the spot market leads to the cooperation between the manufacturer and the distributor, and improves the channel's overall performance, in particular under the VMI arrangement when the wholesale price is sufficiently high.

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The Role of Component Commonality in Product Assortment Decisions

Cited by 21 publications

References 18 publications

Modularization strategy: analysis of published articles on production and operations management (1999 to 2013)

Modularization strategy: analysis of published articles on production and operations management (1999 to 2013)

Designing Multi‐Attribute Procurement Mechanisms for Assortment Planning

The role of spot market in a decentralised supply chain under random yield

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