A multi-criteria evaluation of centralized and decentralized production networks in a highly customer-driven environment

This paper presents an investigation on the performance and viability of centralized and decentralized production networks, under heavy product customization. Discrete-event simulation models of automotive manufacturing networks were developed, for evaluating their performance under highly diversified product demand. Multiple conflicting user-defined criteria were used for the evaluation, including lead time, final product cost, flexibility, annual production volume and environmental impact due to product transportation. An assessment of the examined approaches, with respect to their responsiveness and suitability for highly customer-driven environments is provided, and can be used as a guideline for the production network design.