A study on value setting of product functional specifications with consideration of parts and inventory costs for engineer-to-order production
by Jiahua Weng; Shingo Akasaka; Atsushi Hoshino; Hisashi Onari
Asian J. of Management Science and Applications (AJMSA), Vol. 2, No. 1, 2015

Abstract: To deal with various customers' requirements within short delivery time, the engineer-to-order (ETO) companies have to prepare a large variety of parts in advance, which increase the parts inventory costs. To alleviate this problem, value setting of product functional specifications is focused. If the value set for each product functional specifications item can be decreased, then, number of parts types and the parts inventory including safety stock can be reduced. On the contrary, parts costs increase because more parts with higher specifications are required. Since a product has multiple specification items and for each item dozens of values exist, therefore the value setting (selection) problem has a large number of solution combination. In this paper, calculation procedure based on genetic algorithm is proposed. A case study of drilling machines is conducted. Results show that decreasing value sets for product functional specifications can reduce the total costs of parts and inventory.

Online publication date: Tue, 22-Sep-2015

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the Asian J. of Management Science and Applications (AJMSA):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com