An economic evaluation model of product mix flexibility

This paper develops a product mix flexibility model comprising labor flexibility, machine flexibility, routing flexibility, and information technology, with the product mix flexibility measured by an economic index. Outputs from the model can be useful in making suitable production decisions to produce multiple products in an uncertain environment. Example solutions are given. How the product mix flexibility is affected by flexibility factors is discussed, and the results show that the bottleneck plays the most important role. This paper can help economic evaluation when product mix flexibility and the factors affecting flexibility are to be improved. It can also assist in making enterprise flexibility promotion decisions.