Configuration of Assembly Supply Chain Using Hierarchical Cluster Analysis

Abstract

The purpose of this paper is to propose a clustering method that configures assembly supply chains. In mass customization, product variety is often characterized by a modular product structure, in which each module may offer several variants to deliver product variants. In this context, assembly supply chain is referred to a network of suppliers who produce and assemble product variants. Given that the proportion of the product variants is specified, the technical problem is how to configure the structure of the assembly supply chain in order to reduce the complexity incurred by product variety. The technical challenge is that the possible number of configurations grows dramatically with the number of product variants. Also, enumerating the possible configurations in a mathematical framework is not a trivial task. Instead of taking an exhaustive approach, the solution approach of this paper is based on hierarchical cluster analysis, in which the tree structure is applied to configure assembly supply chain. The core technique is to investigate the coupling concept in the context of assembly supply chain to characterize the grouping conditions in the structuring process. Few examples are utilized to demonstrate and verify the methodology.