Postprint version. Published in Journal of Women's Health, Volume 26, Issue 2, February 1, 2017, pages 128-132.
The definitive version is available at https://doi.org/10.1089/jwh.2016.5746.
In today's uncertain market and continuously evolving technology, managing manufacturing systems are more complex than ever. This paper studies the dynamics of managing variety and volume to enhance value creation in manufacturers implementing system level advanced and automated manufacturing technology (AAM1). The demand is composed of heterogeneous customers who make purchasing decisions depending on the variety levels and lead times of the firm's product offerings. The cost structure adopted calculates profit as the difference between customer value creation rate (VCR) and costs associated with the process of creating this value. Reported results contribute to the variety and volume management literature by offering analytical clarity of factors affecting product platforms and capacity scalability man agement for systems with AAMT. In addition, insightful answers to the trade offs between profit maximising market coverage and investments, smoothing demand policies and system stability for this type of environment are presented. Furthermore, the value of market information in deciding the industrial technology investment and also the impact of product life cycle on the same investment is captured.
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This is a copy of an article published in the Journal of Women's Health, the Journal of Women's Health is available online at: http://www.liebertonline.com.