Comparison of Criticality of Configuration Choices for Market Price and Product Cost

Abstract : The paper presents a quantitative method for determining the criticality of components to costs and sales price in mass customization environments. The method is based information of historically sold configurations and uses backward elimination to arrive at a reduced linear model. The variables included in this model are then the most significant describing variation of (material/salary/total) costs, sales price or profit margin. The method is tested on data from a large manufacturer of mass customized products.
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Peter Nielsen, Thomas Brunoe. Comparison of Criticality of Configuration Choices for Market Price and Product Cost. 19th Advances in Production Management Systems (APMS), Sep 2012, Rhodes, Greece. pp.262-269, ⟨10.1007/978-3-642-40352-1_33⟩. ⟨hal-01472251⟩

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