An analysis of manufacturers’ supply and demand uncertainty based on the dynamic customisation degree

Abstract

Diverse demands regarding products are common; however, manufacturers usually cannot respond immediately to meet such changes upon demand, and thus, customer satisfaction tends to be reduced. Notebook computer manufacturers adopt a production mode of mass customisation; hence, a certain degree of dynamic customisation measurements, inherent in different supply chain models, allow manufacturers to evaluate costs and profits in advance. The application of the model, as proposed in this study, indicates that the most important factor of the customisation degree is product price. The dynamic customisation degree is adjusted based on monitoring indicators, which requires less total cost and produces greater accuracy in forecast results regarding the prediction model of customer demands. This study develops a dynamic customisation model for total product profits, inventory cost of semi-manufactured products, shortage costs and buffer inventory costs, which are affected by the degree of dynamic customisation of the products. It also analyses the supply and demand uncertainties of the Direct Shipment of the Manufactured Model, as well as the Door-to-Door Direct Shipment of the End User Model in the notebook computer industry, as the criteria with respect to a firm's customisation degree, costs, and profits in different supply chain mode operations.

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