COMPLEXITY ANALYSIS OF ASSEMBLY SUPPLY CHAIN CONFIGURATIONS

This paper studies the complexity of assembly supply chains in mass customization environment. The high product variety from mass customization increases the complexity of assembly supply chains. The paper identifies the factors causing supply chain complexity and defines a complexity measure of an assembly supply chain based on these factors and the information entropy theory. Algorithms that determine the optimal supply chain configuration are developed to minimize the supply chain complexity (without and with assembly constraints). This analytical study of supply chain complexity will generate new insights on the influence of product variety on supply chains performance in mass customization. The model and algorithms developed in this paper can assist in making decisions such as when and how to implement a modular assembly supply chain and how much variety should be economically offered.