Journal
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH
Volume 49, Issue 19, Pages 5779-5800Publisher
TAYLOR & FRANCIS LTD
DOI: 10.1080/00207543.2010.519738
Keywords
mass customisation; postponement; integrated operations-marketing problem
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In this paper we present a formal approach to evaluate the value of enhanced customisation. The suggested approach is based on a new perspective addressing the important alignment between the operations and marketing functions, under which we are able to obtain a more holistic understanding of the extent to which enhanced customisation may influence profitability. The model we develop captures the interaction between several factors including the inventory level, number of product variety, price, and delivery lead time. The numerical findings provide insights regarding some important aspects that may inhibit as well as facilitate the progress towards the manufacturing concept with a greater degree of personalised offerings.
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