Describe degree of customization?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Describe degree of customization?

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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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