A note on parts inventory and mass customization for a two-stage JIT supply chain with zero-one type of bills of materials

Abstract

Mass customizing products for customers in some industries has recently been on the increase. The determination of a sequence schedule for a just-in-time supply chain with an assembly system that makes such products typically aims at minimizing variation in the usage of parts. In many cases, the bills of materials are of a 0–1 type. Based on an objective function often used for smoothing parts usage in practice, we theoretically derive a lower bound on inventory deviation, carry out some associated analyses, and provide useful insights. For example, we find that increasing the degree of mass customization tends to increase the inventory levels of relevant parts in the system. This has practical implications for managing parts with multiple variants in the above environment.

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