Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
6894762 | European Journal of Operational Research | 2018 | 14 Pages |
Abstract
Assortment planning seeks to find an optimal set of products that the company should offer to its customers. Traditionally, it is a trade-off between offering larger assortments to maximize customer choice vs. smaller assortments to minimize costs associated with design, manufacturing, and distribution. Existing assortment planning models are quite lacking when it comes to configurable products such as automobiles and detail level of supply chain considerations. Further complications stem from increasingly strict environmental regulations and broader expectations for sustainable products and supply chains. We present a mixed-integer linear programming formulation for integrated assortment and supply chain network design models for automotive products to provide effective decision support and directional guidance to strategic product planners. Our models account for product use and supply chain emissions as well as fuel efficiency requirements. We also present an illustrative case study motivated by a global automaker to demonstrate the utility of the models and study the effects of sustainability requirements on the assortment and supply chain design.
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Edward Lawrence Umpfenbach, Evrim Dalkiran, Ratna Babu Chinnam, Alper Ekrem Murat,