Optimal platform design with modularity strategy under fuzzy environment
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Abstract
Platform has been known as an effective strategy for trading off between product customization and economies of scale, and firms have paid more and more attention to designing an effective and efficient product platform. In platform designing, modularity strategy is usually adopted and new modules are introduced to maintain the variety of products and flexibility of the platform. However, production costs and failure rates of new modules are usually uncertain due to the lack of historical data. Besides, the values of some key parameters in platform design, such as cost saving from designing a modular platform and demand quantity of the products, are also often vague. In this paper, we study the problem of designing a product platform with modularity strategy under fuzzy environment. By characterizing the cost saving from designing a modular platform, the demand quantity of the products and the parameters representing economies of scale and product quality improvement as fuzzy variables, we formulate three fuzzy programming models. An efficient algorithm combining fuzzy simulation and simulated annealing is proposed to solve the models. Numerical experiments are conducted to show the performance of the algorithm.
Keywords
Platform design Platform modularity Credibility theory Fuzzy programming Simulated annealingNotes
Acknowledgements
This work was supported by National Natural Science Foundation of China (No. 71471038) and Program for Huiyuan Distinguished Young Scholars, UIBE.
Compliance with ethical standards
Conflicts of interest
Qinyu Song declares that she has no conflict of interest. Yaodong Ni declares that he has no conflict of interest.
Ethical approval
This article does not contain any studies with human participants or animals performed by any of the authors.
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