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Component commonality has been cited as a powerful approach for manufacturers to cope with increased component proliferation and to control inventory costs. To fully realize its potential benefits, one needs a clear understanding of its impacts on the system. In this paper, the feasibility of using a simulation model to provide a systematic perspective for manufacturing firms to implement a commonality strategy is demonstrated. Alternative commonality strategies including the stage of employing commonality and the allocation policies are simulated. Several interesting results on effects of commonality, allocation policies, and optimal solutions are obtained. We then summarize qualitative insights and managerial implications into the component commonality design and implementation, and inventory management in a general multi-stage assembly system.
To share realize its potential benefits, one needs a clear understanding of its impacts on the system. In this paper, the feasibility of using Alternative commonality strategies include the stage of employing commonality and the allocation policies are simulated. Several interesting results on commonality strategy, allocation policies, and optimal solutions are We then summarize qualitative insights and managerial implications into the component commonality design and implementation, and inventory management in a general multi-stage assembly system.