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This paper presents a systematic approach to estimate the value of commonality in products that involve multiple stage assemblies. In particular, the inventory savings are quantified with a mathematical model. The purpose is to assist product deisgn teams to make rational decisions in assigning unique parts or pursuing component standardization. In order to enhance the usability of the model, approximations are made to simplify the model and calculations.
This paper presents a systematic approach to estimate the value of commonality in products that involve multiple stage assemblies. In particular, the inventory is quantified with a mathematical model. The purpose is to assist product deisgn teams to make rational decisions in assigning unique parts or pursuing component standardization. In order to enhance the usability of the model, approximations are made to simplify the model and calculations.