Research On Two-stage Production Model In Mass Customization Based On Postponement Strategy

As technology becomes more developed, intense competition among enterprises, and the increasingly personalized requirements of customers for products, the traditional mass production are facing unprecedented challenges. The traditional customized production cannot meet the requirement of the customers in low price and short delivery time, even though it can meet the customized needs of customers. In this case, postponement strategy precisely emerges as the times required. This production model also can realize the low cost, the high benefits and meet the customers’ personalized requirements. The customer order decoupling point can realize mass customization; the lot-sizing can realize the economies of scale. For such problems, this paper constructed the model of CODP optimal location and the model of lot-sizing based on these analysis.Firstly, according to the feature of researched problem, this paper divides the decision model of the postponement strategy into two stages, localization of CODP and determination of lot-sizing. In the first stage, we built the localization model of CODP in the M/M/1 context after analysis the influencing factors on the localization CODP. In the second stage, we make the production process into two stages, generalized produce stage and customized produce stage, and we provide the optimization methods. On that basic, we built the model of lot-sizing including production cost, inventory cost, conversion cost. Secondly, we proposed the method for solving the model. For the determination of CODP, we exploited the modifier algorithm. For the lot-sizing problem, we proposed the solving method from in three major areas:the common parts production rate, the lot-sizing of semi-finished parts and the production sequence of semi-finished parts. Finally, the result of simulation shows that this model and methods in this paper is efficient and reliable for this production schedule problem.Through the analysis of postponement strategy process, the paper established the two phase model which are the model of customer order decoupling point positioning and the model of lot-sizing. On the foundation of the model, we put forward the appropriate algorithms and used the numerical example to verify its validity. It has a great significance for enriching the theory of postponement. The purpose of this research is to provide helps and references for mass customization companies in reducing the total costs of production process.