Abstract for: Analyzing the behavior of the complexity level of a company according to logistics cost

Increasing customer requirements lead to higher inventory levels due to product variety. Companies face to high flexibility for customer requirements and a low inventory levels at high product availability. This challenge results in increasing complexity levels and decreasing organization’s success. Silo mentality often leads to local optimization of the overall supply chain. To solve the conflict, an understanding of the relationship between product portfolio complexity and the cost-value ratio over time is required. The project focuses on the divergent aims of marketing and logistics management to make the system behavior more transparent. Decisions for reducing product variants to the market can be quantified.