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Customer Preferences, Supply-Chain Costs, and Product-Line Design

  • Fangruo Chen
  • Jehoshua Eliashberg
  • Paul Zipkin
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 10)

Abstract

The modeling framework developed here to address the positioning and pricing of a product line assumes that products differ in price and in a single physical attribute. It incorporates a flexible representation of customer heterogeneity, allowing for price-sensitive demand, and a rich class of supply-chain cost models. A key characteristic of potentially optimal product lines, termed the cross-point property, is used to develop efficient dynamic programming algorithms to determine an optimal product line.

Keywords

Product Line Maximum Profit Reservation Price Setup Cost Total Demand 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 1998

Authors and Affiliations

  • Fangruo Chen
    • 1
  • Jehoshua Eliashberg
    • 2
  • Paul Zipkin
    • 3
  1. 1.Columbia UniversityUSA
  2. 2.The Wharton SchoolUniversity of PennsylvaniaUSA
  3. 3.Duke UniversityUSA

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