Inventory-shortage driven optimisation for product configuration variation

Inventory control is a critical problem in manufacturing systems. Inventory shortage significantly affects system productivity, while excessive stocks increase the operation cost. It is difficult to avoid fully inventory shortage under mass customisation manufacturing based on product configuration. In this paper, we propose a new approach for inventory-shortage driven optimisation of dynamic product configuration variation to meet the requirements of product configuration change and find suitable combination of parts by considering cost, lead-time and inventory variation. The multi-objective optimisation model uses a multi-objective genetic algorithm and adds impact cost, lead-time and inventory factors to the normal configuration optimisation model. An industrial case study demonstrates the practicality and effectiveness of the proposed approach. By means of this research, valid solutions for configuration variation are available to the decision makers.