Product line selection is an important decision making for firms who need to balance the consumer satisfaction and the costs of the manufacturing and the maintenance. In this paper, we revisit the product line selection problem using the concept of covering. We first identify a potential issue of the biased product line such that a product line may consist of the products with their specifications similar to each other. It often appears especially when the product line selection is made with the linear consumer utility models. Then, we propose a cover-based product line selection and show that we may resolve the issue with the proposed approach. We illustrate it through the numerical study by finding the optimal product line for the Korean mobile phone industry. Our sensitivity analyses and discussions deepen the understandings of the proposed approach.
|Number of pages||14|
|Journal||International Journal of Industrial Engineering : Theory Applications and Practice|
|Publication status||Published - 2018|
Bibliographical noteFunding Information:
This work was supported by the National Research Foundation of Korea (NRF) grant funded by the Korea government(MSIP) (No.NRF-2015R1A2A2A04007359).
© INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING
All Science Journal Classification (ASJC) codes
- Industrial and Manufacturing Engineering