Integration model to support configuration of product architecture and supply chain design

Abstract

Supply chain management is a necessary concept for manufacturing firms as it deals with the coordination and integration of interactions of collaborating partners to realize product. Th e product's architecture is important to incorporating those interactions as it is typically established at the early stages of Product Development and impacts on the costs of interactions (collaboration) within the supply chain. In this paper, a mixed-integer nonlinear model is developed to help minimize the total collaborative costs for organizations involved in collaborative product development. The model concurrently determines the optimal configuration and level of aggregation of modules while minimizing collaborative costs. The application of the model is illustrated using a printer case study. Possible extensions to the approach are highlighted.