Mass personalization is sometimes defined by offering individualized products at prices that are comparable to a mass product (Pine, 1993). However, the practice of mass adjustment shows that consumers are often willing to pay a margin for the adjustment that reflects the utility of a product that is better suited to their needs than the best standard product (see Franke & Piller, 2004, Levin, Schreiber), Lauriola and Gaeth, 2002). Unlike conventional vehicle customization, mass-produced products target the same market segment where standard products were previously purchased. Traditionally, adaptation to the cottage industry has been associated with excesses to such an extent that a very different market segment is desired. This is not the case with mass customization.From the manufacturer’s point of view, this price level requires a level of cost that allows these affordable premiums.The main challenge in the massive adjustment from the perspective of the operational strategy arises from two sources of additional cost flexibility (Su, Chang and Ferguson, 2005): (a) greater complexity and (b) greater uncertainty in commercial operations, implicitly results in higher operating costs. Higher levels of product customization require more product diversity, which in turn requires more parts, processes, suppliers, distributors and distribution channels. A direct consequence of this increase is a greater complexity in the management of all aspects of the business, from the supply of raw materials to distribution. In addition, the increase in product diversity leads to greater uncertainty in the realization of demand, longer production cycle times and longer delivery times (Kumar and Piller, 2006, Yao, Han, Yang and Rong, 2007). ). The greater complexity and uncertainty of the system (demand and delivery time) increase operating costs due to more complex planning, greater security, greater use of resources, more complex manufacturing facilities, cost penalties and higher distribution costs throughout the supply chain. In addition, a significant increase in the cost of supporting the client’s property code interface in a physical business website or business is an integral part of a mass customization strategy.

x

Hi!
I'm Dora!

Would you like to get a custom essay? How about receiving a customized one?

Click here