Development and Application of Optimization Models for Product Line Design

• Main Authors: Kun-HsiangLin, 林琨翔
• Other Authors: Li-Hsing Shih
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/54331716025795752817

博士 === 國立成功大學 === 資源工程學系碩博士班 === 99 === By the term “product line”, a line of substitute products is meant. For example, a product line can contain different models of notebook computers. The product line design optimization model (PLDOM) is to maximize the number of buyers who would choose one of the candidate items of the product line. It is assumed that buyers choose the product that gives them maximum utility. They switch from their current brand only if they receive more utility from a new product. In today’s highly competitive environment the determination of an optimal product line composition is very important for the survival of a firm. The PLDOM can be formulated within the conjoint analysis framework as a 0–1 integer programming problem. Conjoint analysis provides a methodology that links attributes directly to buyers’ preferences. This research develops two kinds of PLDOMs that are base on real market situations. First is for customers unfamiliar with new technologies, it is difficult to precisely appraise preferences for new products. This research proposes fuzzy PLDOM to take preference uncertainty into consideration. Second is for the companies with large and complete product line, they must plan a successful product line rollover scheme to launch new products and delete existing ones simultaneously. This research proposes product line rollover optimization model to reach this demand. In fuzzy PLDOM, Optimal schemes are obtained under Fuzzy and Crisp scenarios. The results show that customers with high preference uncertainty have different purchase decisions under above scenarios. The different purchase decisions lead to a great inconsistency between the optimal schemes. The Fuzzy scenario takes preference uncertainty into consideration and uses stricter standards to judge whether customers buy products with new technology. The product line rollover procedure of Proposed Model is achieved in one phase. The results show that Proposed Model can consider the complementarily between the product additions and deletions, which helps companies with complete product line to find better product line rollover schemes.