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Requirements planning for modular products

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  • Anand Paul
  • Asoo J. Vakharia

Abstract

The focus of this paper is on determining the requirements of different component options of a modular end‐product in an uncertain environment. We explicitly model two distinct sources of uncertainty: stochastic end‐product demand and unknown market proportions for the different product options available. Our cost minimizing model focuses on determining the optimal requirements policies for component options that meet a pre‐set service level. We show that simple common‐sense requirements policies are not generally optimal; there is a non‐linear connection between service level and component requirements that is hard to characterize without a detailed analysis. © 2006 Wiley Periodicals, Inc. Naval Research Logistics, 2006

Suggested Citation

  • Anand Paul & Asoo J. Vakharia, 2006. "Requirements planning for modular products," Naval Research Logistics (NRL), John Wiley & Sons, vol. 53(5), pages 418-431, August.
    • Handle: RePEc:wly:navres:v:53:y:2006:i:5:p:418-431
    DOI: 10.1002/nav.20149
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