A postponement model to determine the customisation degree applied to the notebook computer industry

Abstract

Facing an increasingly intense and competitive environment, the information industry must design a global service chain for its self-development and also to make its global development more efficient. The application of the postponement concept has become an efficient method to help enterprises reach this goal. With the aim of building and analysing a postponement structure from the viewpoint of added value and demand uncertainty, this study constructed a multi-objective postponement model. The model was then analysed, using three quantifying objects: the overall cost, product types and the average assembly time; and two decision variables: the variety of parts and inventory quantity. In an indeterminate function, both the application demanding frequency and demanded quantity submit to a Poisson distribution and Normal distribution. Considering the profit model, the manufacturer can decide on the most suitable degree of customisation according to market situations, suppliers at the time of production and most important, the manufacturer's profit. This study uses a notebook computer manufacturer as an example to carry out empirical analysis. The manufacturer was permitted to decide the optimal product types depending on its financial status. Postponement techniques were then provided as a reference to the manufacturer to help it maximise profits.

Keywords:

• postponement concept
• demand uncertainty
• multi-objective postponement model
• degree of customisation
• notebook computer manufacturer