We consider the effect of changes in the order of operations in a chain of
manufacturing operations in which product differentiation increases at each
operation of the chain. We investigate several measures for evaluating the
performance of such a chain, and show that the optimal ordering of the ope
rations depends critically on the performance measure. We give a unified tr
eatment of earlier results that provides new intuition. We then extend thes
e results to an explicit cost-minimization model. (C) 2001 Elsevier Science
B.V. All rights reserved.