Describe degree of customization?
Describe degree of customization?
Mass customization
Standardization enables businesses to produce high volumes of relatively low cost product but with little variety. However, customers prefer variety at low cost. Hence the need to balance the requirements. A degree of design variety, production process variety, skill variety is needed leading to decrease in productivity, increase in inventory and increase maintenance and after sales service problems. Mass customization is able to address these issues by using a strategy to produce standardized goods or services but accommodating some degree of customization in the final product or service.
Tactics of delayed differentiation and modular design are used to accomplish this.
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