An Integrated Planning Model for a Multi Echelon Supply Chain within Mass Customization

Document Type: GOL20


Laboratory of Engineering, Industrial Management and Innovation, Faculty of Sciences and Technology, Univ Hassan 1, Settat, Morocco


Product customization is considered as the widespread strategy for the actual market trend oriented toward customer focus. In this field, mass customization sights mainly to emerge economy of scale and economy of scope in order to integrate mass production principles with customization abilities. This research views the collaborative management through an integrated procurement, production and distribution mixed integer linear programming (MILP) as a planning modeling approach for a multi-echelon and multi-site supply chain within tactical decision level. The model formulation is based on dyadic relationships according to leaders and followers tradeoffs where the supply chain’s stakeholders are depicted as follows, a) customers: Original Equipment Manufacturers (OEMs) identified as leaders and (b) first-tier suppliers: customized products manufacturers (c) second-tier suppliers: raw material suppliers, identified as followers. The feasibility of the proposed model has been provided through its resolution to optimality by an exact method, the decision-making process is focused on the first-tier suppliers’ operations in order to satisfy the customized demands taking into account realistic characteristics of mass customization environment for the internal and external constraints through the supply chain. The illustration of the model is performed with an example from the automotive industry, a sensitivity analysis has been conducted in order to provide the main decision points through key parameters, for instance, the capacities threshold according to a defined demand level and its customized structure which contribute to highlight a constructive managerial insights.


Atan, Z., Ahmadi, T., Stegehuis, C., de Kok, T., and Adan, I. (2017). Assemble-to-order systems: A review. European Journal of Operational Research, Vol. 261(3), pp. 866-879.

Ballou, R. H. (2007). Business logistics/supply chain management: planning, organizing, and controlling the supply chain. Pearson Education India.

Bonev, M., Myrodia, A., and Hvam, L. (2017). Reconfiguring Variety, Profitability, and Postponement for Product Customization with Global Supply Chains. In Managing Complexity, Springer, Cham. (pp. 13-26)

Borgonovo, E. and Plischke, E. (2016). Sensitivity analysis: A review of recent advances. European Journal of Operational Research, Vol. 248(3), pp. 869‑887.

Budiman, S. D. and Rau, H. (2019). A mixed-integer model for the implementation of postponement strategies in the globalized green supply chain network. Computers and Industrial Engineering, Vol. 137, pp. 106054.

Candelo, E. (2019). Mass Customization: Another Marketing Breakthrough. Dans E. Candelo (dir.), Marketing Innovations in the Automotive Industry : Meeting the Challenges of the Digital Age (pp. 95‑103). Springer International Publishing.

Chen, G., Liu, X., and Zhao, W. (2021). Mass customization based on generic technology and modular production method. In E3S Web of Conferences (Vol. 235). EDP Sciences.

Coletti, P., and Aichner, T. (2011). Mass customization. In Mass Customization (pp. 23-40). Springer, Berlin, Heidelberg.

Davis, S. M. (1990). Future perfect. In Human resource management in international firms (pp. 18-28). Palgrave Macmillan, London.

Heradio, R., Perez-Morago, H., Alférez, M., Fernandez-Amoros, D. and Alférez, G. H. (2016). Augmenting measure sensitivity to detect essential, dispensable and highly incompatible features in mass customization. European Journal of Operational Research, Vol. 248(3), pp. 1066‑1077.

Hernandez-Ruiz, K. E., Olivares-Benitez, E., Martinez-Flores, J. L. and Caballero-Morales, S. O. (2016). Optimizing Safety Stock Levels in Modular Production Systems Using Component Commonality and Group Technology Philosophy: A Study Based on Simulation. Mathematical Problems in Engineering, Vol 2016, Article ID: 9510201.

Jin, M., Wang, H., Zhang, Q. and Zeng, Y. (2019). Supply chain optimization based on chain management and mass customization. Information Systems and E-Business Management, Vol. 18 (4), pp. 647-664.

Lai, F., Zhang, M., Lee, D. M. S. and Zhao, X. (2012). The impact of supply chain integration on mass customization capability: An extended resource-based view. IEEE Transactions on Engineering Management, Vol. 59(3), pp. 443‑456.

Liu, G. (Jason) and Deitz, G. D. (2011). Linking supply chain management with mass customization capability. International Journal of Physical Distribution & Logistics Management, Vol. 41(7), pp. 668‑683.

Liu, L. (2013). Supply Chain Management under Mass Customization. Advanced Materials Research,Vol. 616, pp. 2044-2047.

Masoud, S. A. and Mason, S. J. (2016). Integrated cost optimization in a two-stage, automotive supply chain. Computers & Operations Research, Vol. 67, pp. 1‑11.

Olbert, H., Protopappa‐Sieke, M. and Thonemann, U. W. (2016). Analyzing the Effect of Express Orders on Supply Chain Costs and Delivery Times. Production and Operations Management, Vol. 25(12), pp. 2035‑2050.

Pasandideh, S. H. R., Niaki, S. T. A. and Asadi, K. (2015). Bi-objective optimization of a multi-product multi-period three-echelon supply chain problem under uncertain environments: NSGA-II and NRGA. Information Sciences, Vol. 292, pp. 57‑74.

Christy DP (1993). Mass Customisation: The New Frontier in Business Competition by B. Joseph Pine II, (Boston, Harvard Business School Press), Australian Journal of Management, Vol. 17(2), pp. 271-283

Sezen, B., Karakadilar, I. S., & Buyukozkan, G. (2012). Proposition of a model for measuring adherence to lean practices: applied to Turkish automotive part suppliers. International Journal of Production Research, Vol. 50(14), pp. 3878-3894.

Rafiei, H., Safaei, F. and Rabbani, M. (2018). Integrated production-distribution planning problem in a competition-based four-echelon supply chain. Computers & Industrial Engineering, Vol. 119, pp. 85‑99.

Roh, J., Hong, P. and Min, H. (2014). Implementation of a responsive supply chain strategy in global complexity: The case of manufacturing firms. International Journal of Production Economics, Vol. 147, pp. 198‑210.

Touil, A., Echchatbi, A. and Charkaoui, A. (2019). Integrated production and distribution in a milk supply chain under uncertainty with the Hurwicz criterion. International Journal of Supply and Operations Management, Vol. 6(1), pp. 30‑50.

Um, J., Lyons, A., Lam, H. K. S., Cheng, T. C. E. and Dominguez-Pery, C. (2017). Product variety management and supply chain performance: A capability perspective on their relationships and competitiveness implications. International Journal of Production Economics, Vol. 187, pp. 15‑26.

Wang, S., Li, J., Song, J., Li, Y. and Sherk, M. (2018). Institutional pressures and product modularity: do supply chain coordination and functional coordination matter? International Journal of Production Research, 56(20), 6644‑6657.

Wu, Q., Liao, K., Deng, X. and Marsillac, E. (2019). Achieving automotive suppliers’ mass customization through modularity: Vital antecedents and the valuable role and responsibility of information sharing. Journal of Manufacturing Technology Management, Vol. 31(2), pp. 306‑329.

Yang, B. and Burns, N. (2003). Implications of postponement for the supply chain. International Journal of Production Research, Vol. 41(9), pp. 2075‑2090.

Yi Chaojue and Lu Ming. (2019). Mixed-Integer Linear Programming–Based Sensitivity Analysis in Optimization of Temporary Haul Road Layout Design for Earthmoving Operations. Journal of Computing in Civil Engineering, Vol. 33(3), pp. 04019021.