Assessment of Product Variety Complexity

Product variety complexity assessment plays a vital role in system design, as it has tremendous negative effects on manufacturing complexity in assembly systems and supply chains. On the other hand, practitioners and researchers frequently consider the number of product variants as a sufficient measure to be used to manage this kind of complexity. However, as shown in this study, such a measure does not reflect all pertinent features of complexity. Therefore, the main goal of the paper is to develop a measurement method for product variety complexity that adequately reflects relevant relations between the portfolio of optional components and the number of product variants. As presented in the paper, the concept of information theory can be effectively applied to measure product variety complexity. Moreover, such a measure can also be useful to better understand this system’s properties in order to reduce the level of variety-induced complexity. As such, the proposed method can be viewed as a complementary tool for reducing manufacturing complexity in terms of mass customization. The developed complexity metric was successfully tested on a realistic design example.