International Journal of Computational Intelligence Systems

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Volume 9, Issue 6, December 2016, Pages 1133 - 1153

Modularity, Lead time and Return Policy for Supply Chain in Mass Customization System

Authors
Jizi Li*, lijison.csc@qq.com
CSC Networks System Research Centre, Wuhan Textile University, Wuhan, Hubei Province, 430073, RP China
Chunling Liuliuchunring@gmail.com
CSC Networks System Research Centre, Wuhan Textile University, Wuhan, Hubei Province, 430073, RP China
Weichun Xiao835452199@qq.com
CSC Networks System Research Centre, Wuhan Textile University, Wuhan, Hubei Province, 430073, RP China
* Corresponding author: lijison.csc@qq.com, Tel: +(86)027 5936 3271
Corresponding Author
Received 4 August 2015, Accepted 4 December 2015, Available Online 1 December 2016.
DOI
10.1080/18756891.2016.1256575How to use a DOI?
Keywords
Mass customization; supply chain; return policy; modularity; lead time
Abstract

Mass Customization (MC) is a flexible manufacturing system with features of Mass Production (MP) and Customization Production (CP). However, there is few researches about competition & cooperation between the upstream MP firm (module manufacturer) and downstream CP firm (assembler) under MC supply chain scenario. From supply chain perspective, this paper first develops the base models considering the influences of return policy, modularity level, production lead time and pricing factors. Furthermore, according to the different decision-making situations, three kinds of MC supply chain models in competitive or cooperative environment (i.e. simultaneous-move game, sequential-move game and the cooperative game) have been built, then, the optimal solution of each model have been analyzed and compared, and coordination mechanism is design to cooperate in MC supply chain via profit-sharing with Nash bargaining power. Finally, through the numerical analysis, we find the highest profit is from the cooperative setting, then followed by in simultaneous-move and sequential-move one, the reason is that the lowest product price and the largest market demand easily occurs in the cooperative game compared with the others, the upstream module manufacturer takes advantage of MP to increase the modularity level and decrease manufacturing cost for the whole supply chain, the downstream assembler task is to shorten the lead time according to customer’s needs, while the wholesale price in cooperative game higher than simultaneous-move game and sequential-move game can ensure each firm’s benefits, effectively prevent from the effect of double marginalization and obtain Pareto optimality.

Copyright
© 2016. the authors. Co-published by Atlantis Press and Taylor & Francis
Open Access
This is an open access article under the CC BY-NC license (http://creativecommons.org/licences/by-nc/4.0/).

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Journal
International Journal of Computational Intelligence Systems
Volume-Issue
9 - 6
Pages
1133 - 1153
Publication Date
2016/12/01
ISSN (Online)
1875-6883
ISSN (Print)
1875-6891
DOI
10.1080/18756891.2016.1256575How to use a DOI?
Copyright
© 2016. the authors. Co-published by Atlantis Press and Taylor & Francis
Open Access
This is an open access article under the CC BY-NC license (http://creativecommons.org/licences/by-nc/4.0/).

Cite this article

risenwbib
TY  - JOUR
AU  - Jizi Li
AU  - Chunling Liu
AU  - Weichun Xiao
PY  - 2016
DA  - 2016/12/01
TI  - Modularity, Lead time and Return Policy for Supply Chain in Mass Customization System
JO  - International Journal of Computational Intelligence Systems
SP  - 1133
EP  - 1153
VL  - 9
IS  - 6
SN  - 1875-6883
UR  - https://doi.org/10.1080/18756891.2016.1256575
DO  - 10.1080/18756891.2016.1256575
ID  - Li2016
ER  -