Using same set of components in a variety of finished goods.

• A. Materials Handling
• B. Modularization
• C. Milk Run
• D. Nesting

Answer: (B)

Modularization is about designing products as a set of interchangeable modules or subassemblies that can be combined in different ways to create multiple finished goods. By using a common set of components across various products, you gain shared parts, standardized interfaces, and a simpler bill of materials, which lowers inventory complexity and speeds up production and changeovers. This creates a product family or platform approach: you keep the core modules in stock and assemble them into different configurations to meet demand, achieving economies of scale and faster time-to-market while still offering variety. It’s not about how parts are moved (materials handling), the routing of orders (milk runs), or optimizing cutting layouts (nesting), but about the architectural approach that enables multiple products to share the same components.