Modeling the effect of product architecture modularity in supply chains

Abstract

This paper proposes mathematical modeling as an alternative research methodology for analyzing complex systems. The process of deriving a mathematical model is explored through the complexities of product architecture modularity in supply chains. Two model settings are analyzed: (1) supply chain and (2) focal firm. At the supply chain level, 'modularization characteristic curve' is applied to assess the impact of degree of supplier-buyer interdependence on modularization. At the focal firm level, the 'modularization function' is applied to measure the degree of modularization embedded in product architecture designs. In order to illustrate how the models can be applied, the case of Chrysler Jeep WIPERs is presented. © 2005 Physica-Verlag Heidelberg.