Global Product Family Design: A Mathematical Model for Simultaneous Decision of Module Commonalization and Supply Chain Configuration

<jats:p>Today’s manufacturing has become global at all aspects of marketing, design, production, distribution, etc. While product family design has been an essential viewpoint for meeting with the demand for product variety, its meaning is becoming more broad and complicated with linking product design with issues on market systems, supply chain, etc. This paper calls such a design situation ‘global product family design,’ and firstly characterizes its components and complexity. Following them, this paper develops a mathematical model for the simultaneous decision problem of module commonalization strategies under the given product architecture and supply chain configuration through selection of manufacturing sites for module production, assembly and final distribution as an instance of the problems. This paper demonstrates some numerical case studies for ascertaining the validity and promise of the developed mathematical model with an optimization method configured with a genetic algorithm and a simplex method. Finally, it concludes with some discussion on future works.</jats:p>