Driven by internet and e-Commerce, cost comparison is easy. However, most of the manufacturers are still using conventional distribution channel and sale agents, these channels are known as demand chain. On the other hand, consumers are performing price searching through internet to fulfill their expectation on price. To maintain the price advantage and to keep the profit, new demand chain members need new commodities to sell goods to internet-era consumers. The aim of this paper is to provide a B-Stock Modulation System (BSMS) for managing and fulfilling the new demand chain requests. B-Stock is a term commonly used for brand new goods with quality and /or service handicapped, where A-Stock is regarded as brand new goods up to the manufacturer's standard. By quality differentiation, a manufacturing information system is established for modulating the production mix between A-Stock and B-Stock The proposed BSMS system contains a definition system, the modulation system, a sorting and remanufacturing mechanism, and the logistics support system. With the introduction of BSMS, manufacturers can generate additional value from existing manufacturing system, and to lower scrap rate for environment protection.
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