Identifying Optimal Granularity Level of Modular Assembly Supply Chains Based on Complexity-Modularity Trade-Off

Abstract

Complexity has been argued to limit operational efficiency, hinder decision-making and induce disruption in supply chain networks. The main aim of this paper is to investigate the architectural trade-off between complexity and modularity in modular assembly supply chain networks. Towards this, an information-entropic complexity model is developed and applied to the domain of assembly supply chains and logistics. This approach characterises complexity as a combination of the intrinsic complexity of the system modules/interfaces and the influence of the topological composition of the network. The model is then used within an optimisation framework, where the optimal granularity level for assembly supply chain design solutions for a given assembly product can be automatically verified by considering the trade-off between complexity and network modularity. It is concluded that the proposed methodology could help to minimise the complexity of supply chain assembly configurations while maximising their modularity and thereby help to increase both the reliability and performance of supply chain networks.