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.
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Chen, F., Eliashberg, J., Zipkin, P. (1998). Customer Preferences, Supply-Chain Costs, and Product-Line Design. In: Ho, TH., Tang, C.S. (eds) Product Variety Management. International Series in Operations Research & Management Science, vol 10. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-5579-7_7
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DOI: https://doi.org/10.1007/978-1-4615-5579-7_7
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