Differentiation vs. standardisation in supply chain segmentation: a quantitative study

Chan, Claire and Arikan Fichtinger, Emel (2021) Differentiation vs. standardisation in supply chain segmentation: a quantitative study. International Journal of Production Research, 59 (15). pp. 4593-4614. ISSN 1366-588X

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Abstract

The key value proposition of supply chain segmentation is to differentiate supply chains through a reasonable number of segments in order to gain a level of standardisation and avoid managerial complexity incurred in fully customised supplychains. The decision on how products are grouped into segments is at the core of a successful implementation. A fundamental trade-off in this decision-making process is between higher differentiation by having small group sizes and higher standardisation from a smaller number of groups. In this manuscript, we implement segmentation on supply chain configurations and investigate the trade-off by analysing several network scenarios. We use optimisation models for each scenarioto align decisions of segment formation and supply chain configurations. We show that divergences in demand characteristics, geographic difference, and cost synergy such as pooling effect have impacts on the balance of standardisation and differentiation.

Item Type: Article
Keywords: supply chain segmentation; supply chain configuration; classification; network optimisation; guaranteed serviceapproach; inventory pooling
Divisions: Departments > Wirtschaftsinformatik u. Operations Mgmt > Produktionsmanagement > Reiner
Forschungsinstitute > Supply Chain Management
Version of the Document: Published
Depositing User: Gertraud Novotny
Date Deposited: 25 Jun 2020 10:32
Last Modified: 20 Jul 2021 11:39
Related URLs:
FIDES Link: https://bach.wu.ac.at/d/research/results/95873/
URI: https://epub.wu.ac.at/id/eprint/7652

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