Integration of Product Design and Supply Chain Performance for Multi-Market Conditions

Open Access
Li, Yuxi
Graduate Program:
Industrial Engineering
Master of Science
Document Type:
Master Thesis
Date of Defense:
November 28, 2016
Committee Members:
  • Gul Okudan Kremer, Thesis Advisor
  • Jianhua Chen, Committee Member
  • Xinli Wu, Committee Member
  • product design
  • supply chain
  • design for assembly
  • design for profit
  • mixed integer programming
Many studies have pointed out that the integration of product design and supply chain design is an essential factor for manufacturing efficiency. Nevertheless, methods that optimize both product design and supply chain performance for different geographical markets have not been much discussed in existing studies. To tackle this issue, this paper proposes a mixed integer programing (MIP)-based methodology that identifies the profitability of products for different markets through the integration of the Design for Assembly (DFA) and Design for Profit (DFP) approaches. A case study of the bicycle industry is illustrated for this process, and an MIP model is developed to optimize both product design and supply chain design for three regional markets. This model shows suitable product designs for the different markets under the objective of cost minimization. A sensitivity analysis is also performed with labor cost to identify its impact on supply chain execution. Finally, product prices for the markets are estimated based on the optimization result and the rate of commercial profit.