Managing Variety in Automotive Logistics With the Rule of Three

Abstract

In this paper, the management of variety in automobile manufacturing is broadened from simply considering the choice of models, options and parts to include strategic issues in sourcing and logistics systems. Some of the major cost elements associated with varietal increase are identified, leading into a discussion of how logistics system redesign can reduce or, indeed, eliminate the unwanted impacts of varietal increase. In this context, a “Rule of Three” is developed to assist in the effective management of variety in automotive logistics and elsewhere.

Citation

Cooper, J. and Griffiths, J. (1994), "Managing Variety in Automotive Logistics With the Rule of Three", The International Journal of Logistics Management, Vol. 5 No. 2, pp. 29-40. https://doi.org/10.1108/09574099410805180