Product configuration with partial demand misfit in an uncertain environment

Many manufacturers change their production paradigm from mass production to mass customization to raise market share. However, the platform strategy with too many components commonality may damage customer utility. We propose the over-design parameter of low-end products and the under-design parameter of high-end products to manage it. Considering the misfit platform and customer utility, these parameters help obtain optimal product preference. In addition, we combine the platform design with uncertain demand considering component inventory. An efficient greedy simulated annealing algorithm is proposed to solve the model. Computational experiments are conducted to show the performance of the model and the algorithm.