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Research Papers

An Integrative Methodology for Product and Supply Chain Design Decisions at the Product Design Stage

[+] Author and Article Information
Ming-Chuan Chiu

Department of Industrial and Manufacturing Engineering, The Pennsylvania State University, 310 Leonhard Building, University Park, PA 16802mzc148@psu.edu

Gül Okudan

Department of Industrial and Manufacturing Engineering, The Pennsylvania State University, 310 Leonhard Building, University Park, PA 16802; School of Engineering Design, The Pennsylvania State University, 213T Hammond Building, University Park, PA 16802gkremer@psu.edu

J. Mech. Des 133(2), 021008 (Feb 08, 2011) (15 pages) doi:10.1115/1.4003289 History: Received August 25, 2009; Revised December 09, 2010; Published February 08, 2011; Online February 08, 2011

Supplier selection is one of the key decisions in supply chain management. Companies need not only to make the “make” or “buy” decisions but also differentiate across potential suppliers in order to improve operational performance. Product design is an engineering based activity that realizes the customer requirements into functions of a new product. Many studies have pointed out that the integration of product and supply chain is a key factor for profitability and efficiency. However, most studies address supply chain performance after freezing the design of the product; only a few studies discuss when and how to incorporate supply chain decisions during product design. This paper presents a graph theory based optimization methodology to tackle this problem. The supplier selection issue is considered by evaluating its impact on both internal (e.g., ease of assembly) and external (e.g., transportation time) enterprise performances, which are aggregated as supply chain performance at the conceptual design stage. A case study in the bicycle industry demonstrates the advantages of this methodology. The presented mathematical programming formulation enables simultaneous optimization of both product design and supply chain design during the early design stages.

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Copyright © 2011 by American Society of Mechanical Engineers
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References

Figures

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Figure 1

Supply chain framework (3)

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Figure 2

Supplier selection categories (10)

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Figure 3

The implications of product architecture (13)

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Figure 4

Flow of the proposed method

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Figure 5

Simple assembly (a), its connection diagram (b), and its disassembly graph (c) (36)

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Possible supply chain network and product structure

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Simplified bike architecture

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Bike supply chain structure

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Figure 9

EMS diagram of a bike with mapping components

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The DfA index calculation

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64 concepts generated from the design repository

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Figure 12

Two-module product architectures (a) and three-module case (b)

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(a) Phase I: only PD optimization, (b) both PD and SC optimizations in phase II (cost minimization), and (c) both PD and SC optimizations in phase II (lead-time minimization)

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