REVIEWING COMPLEXITY COSTS - WHAT PRACTICE NEEDS and WHAT RESEARCH CONTRIBUTES

Abstract

Introducing more customized products causes complexity costs, which are hard to estimate and measure. Researchers and practitioners have therefore developed approaches to measure these costs. This paper reviews the current approaches and reveals a lack of a holistic view on the underlying problem and, hence, deficits to certain economic questions. We therefore suggest using the Extended Axiomatic Design (EAD) framework as an interdisciplinary model that adresses the economic consequences of variety-induced complexity.