Today's industry faces new challenges such as diverse customer demands, shorter product development cycles and cost pressure, which compel manufacturing firms to change their production paradigm from one-sizefits-all mass production toward mass customisation. Over the past decades, modular design has received great attention as a key enabler for mass customisation, and component sharing and platform modularity have been quite popular strategies for modular design. While modular design

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... and their strategies offer a number of advantages such as late product differentiation and changeability, there are unfortunately negative aspects, for example, sales loss due to reduced performance compared to integral design approaches, which have received little attention. Therefore, we propose a hybrid model of the two strategies in order to develop the most profitable product family. A detailed numerical analysis provides empirical support for the feasibility and effectiveness of the hybrid model.