A procedure for reducing stock–keeping unit variety by linking internal and external product variety

Aleksandra Magdalena Staśkiewicz; Lars Hvam; Anders Haug

doi:10.1016/j.cirpj.2022.01.015

A procedure for reducing stock–keeping unit variety by linking internal and external product variety

Aleksandra Magdalena Staśkiewicz
, Lars Hvam^*
, Anders Haug

^*Kontaktforfatter

Institut for Erhverv og Bæredygtighed

Danmarks Tekniske Universitet

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › peer review

Abstract

While the literature has paid significant attention to product variety management, only sparse consideration has been given to its relationship with supply chain processes. To address this gap in the literature, this paper describes a procedure for stock–keeping unit (SKU) reduction that provides a transparent link between internal variety (component and module level) and external variety (finished goods level) and relates this to supply chain processes. When applied at a large international company that manufactures hearing aids, the procedure achieved a 33% reduction in SKU variants at the module/component level while maintaining the end–product variety offered to customers.

Originalsprog	Engelsk
Tidsskrift	CIRP Journal of Manufacturing Science and Technology
Vol/bind	37
Sider (fra-til)	344-358
ISSN	1755-5817
DOI	https://doi.org/10.1016/j.cirpj.2022.01.015
Status	Udgivet - maj 2022

Bibliografisk note

Funding Information:
The present study has some limitations. First, as the procedure was tested in one company only, this obviously limits generalizability, and further research will be needed to clarify its potential and limitations. Nevertheless, product data and performance measures retrieved from multiple sources provided a good foundation for applying the procedure, and the findings were supported by stakeholder inputs. It is also worth noting that implementation resulted in a 33% reduction in SKU variants without reducing the variety of end–user offerings.

Publisher Copyright:
© 2022 CIRP

Finansiering

The present study has some limitations. First, as the procedure was tested in one company only, this obviously limits generalizability, and further research will be needed to clarify its potential and limitations. Nevertheless, product data and performance measures retrieved from multiple sources provided a good foundation for applying the procedure, and the findings were supported by stakeholder inputs. It is also worth noting that implementation resulted in a 33% reduction in SKU variants without reducing the variety of end–user offerings.

Dokumenter og links

10.1016/j.cirpj.2022.01.015

SDU link

Tjek adgangen til materialet i Syddansk Universitetsbiblioteks søgemaskine

Citationsformater

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abstract = "While the literature has paid significant attention to product variety management, only sparse consideration has been given to its relationship with supply chain processes. To address this gap in the literature, this paper describes a procedure for stock{\textendash}keeping unit (SKU) reduction that provides a transparent link between internal variety (component and module level) and external variety (finished goods level) and relates this to supply chain processes. When applied at a large international company that manufactures hearing aids, the procedure achieved a 33\% reduction in SKU variants at the module/component level while maintaining the end{\textendash}product variety offered to customers.",

keywords = "Process complexity, Product complexity, Product variety management, SKU rationalization, SKU reduction, Supply chain complexity",

author = "Sta{\'s}kiewicz, \{Aleksandra Magdalena\} and Lars Hvam and Anders Haug",

note = "Publisher Copyright: {\textcopyright} 2022 CIRP",

year = "2022",

month = may,

doi = "10.1016/j.cirpj.2022.01.015",

language = "English",

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T1 - A procedure for reducing stock–keeping unit variety by linking internal and external product variety

AU - Staśkiewicz, Aleksandra Magdalena

AU - Hvam, Lars

AU - Haug, Anders

PY - 2022/5

Y1 - 2022/5

N2 - While the literature has paid significant attention to product variety management, only sparse consideration has been given to its relationship with supply chain processes. To address this gap in the literature, this paper describes a procedure for stock–keeping unit (SKU) reduction that provides a transparent link between internal variety (component and module level) and external variety (finished goods level) and relates this to supply chain processes. When applied at a large international company that manufactures hearing aids, the procedure achieved a 33% reduction in SKU variants at the module/component level while maintaining the end–product variety offered to customers.

AB - While the literature has paid significant attention to product variety management, only sparse consideration has been given to its relationship with supply chain processes. To address this gap in the literature, this paper describes a procedure for stock–keeping unit (SKU) reduction that provides a transparent link between internal variety (component and module level) and external variety (finished goods level) and relates this to supply chain processes. When applied at a large international company that manufactures hearing aids, the procedure achieved a 33% reduction in SKU variants at the module/component level while maintaining the end–product variety offered to customers.

KW - Process complexity

KW - Product complexity

KW - Product variety management

KW - SKU rationalization

KW - SKU reduction

KW - Supply chain complexity

U2 - 10.1016/j.cirpj.2022.01.015

DO - 10.1016/j.cirpj.2022.01.015

M3 - Journal article

AN - SCOPUS:85125526518

SN - 1755-5817

VL - 37

SP - 344

EP - 358

JO - CIRP Journal of Manufacturing Science and Technology

JF - CIRP Journal of Manufacturing Science and Technology

ER -

A procedure for reducing stock–keeping unit variety by linking internal and external product variety

Abstract

Bibliografisk note

Finansiering

Dokumenter og links

SDU link

Fingeraftryk

Citationsformater