| Summary: | In Product design process, aspects related to the manufacturing process and
supply chain should be considered. The design is produced not only satisfy for
consumers needs but it fulfilled the constraints related to manufacturing and
supply chain aspects. This research aims to make a model to determine the
cheapest product design from both of manufacturing process and supply chain.
This research uses binary programming as an approach. The cost aspects used in
this research are component�s manufacturing cost, supplier fixed contact cost,
assembly operation cost and quality improvement cost. The result of research, a
physical product design with the lowest total cost by combining components from
several designs and adding the value constraint on the quality specification.
Keywords: process selection, supplier fixed contact cost and quality improvement
cost.
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