A mathematical model to determine the optimal size of a product line from the perspective of manufacturing companies

Jungju Park, Ji Hyoun Lim, Jeonghoon Mo

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

The product line optimization plays a key role to increase the revenue by satisfying consumers' various needs. While the extant studies have made the approaches from the perspective of consumers, in this paper, we propose a product line design problem from the perspective of manufacturers. The concept of neighborhood is introduced that parameterizes consumers' tolerance on specification differences. In addition, the maintenance costs are considered in order to cope with the multi-periodic characteristics of the problem. We demonstrated the applicability of the proposed model to a major mobile phone manufacturing company in Korea. The case study shows that the chosen manufacturing company could have reduced the size of its product line by 64.2%, and saved 68.0% of its product line development costs.

Original languageEnglish
Title of host publicationIEEM 2015 - 2015 IEEE International Conference on Industrial Engineering and Engineering Management
PublisherIEEE Computer Society
Pages1437-1441
Number of pages5
ISBN (Electronic)9781467380669
DOIs
Publication statusPublished - 2016 Jan 18
EventIEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2015 - Singapore, Singapore
Duration: 2015 Dec 62015 Dec 9

Publication series

NameIEEE International Conference on Industrial Engineering and Engineering Management
Volume2016-January
ISSN (Print)2157-3611
ISSN (Electronic)2157-362X

Other

OtherIEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2015
CountrySingapore
CitySingapore
Period15/12/615/12/9

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All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting (miscellaneous)
  • Industrial and Manufacturing Engineering
  • Safety, Risk, Reliability and Quality

Cite this

Park, J., Lim, J. H., & Mo, J. (2016). A mathematical model to determine the optimal size of a product line from the perspective of manufacturing companies. In IEEM 2015 - 2015 IEEE International Conference on Industrial Engineering and Engineering Management (pp. 1437-1441). [7385885] (IEEE International Conference on Industrial Engineering and Engineering Management; Vol. 2016-January). IEEE Computer Society. https://doi.org/10.1109/IEEM.2015.7385885