Cost optimization model of manufacturer implementation postponement strategy in mass customization

To deal with production cost optimization problem of postponement system in Mass Customization(MC),a basic model of production cost optimization and its extension in manufacturer implementation postponement strategy were proposed.The objective was to minimize the overall production cost of the postponement system,which included the costs of fixed assets investment cost,manufacturing cost,Work in Process(WIP) holding cost,semi-finished product inventory holding cost and customer lead time.Then optimum situation of customer order decoupling point and its determinant factors were analyzed.The effect of average customer demand arrival rate,the customized product type number,and the average processing rates of manufacturing center on customer order decoupling point optimized situation were also pointed out.Finally,the production cost optimization model of postponement system was simulated.