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Profit-Optimizing Product Line Design, Selection and Pricing with Manufacturing Cost Consideration

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Product Variety Management

Part of the book series: International Series in Operations Research & Management Science ((ISOR,volume 10))

Abstract

Much of the literature on product line design or product line selection focuses on revenue or market share maximization, but in many cases, the true objective is to maximize profit. In this paper, we survey the literature on models that address decisions regarding the conceptual design of products to be offered, or the selection of products among a large set of potential products, and, in some cases, the prices of the offered products. We focus on the combined effects of multiple product offerings on both revenue and manufacturing costs, and emphasize models that would accommodate variable manufacturing costs, the cost of manufacturing facilities, and/or engineering design costs of some form. The paper concludes with promising directions for future research.

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Author information

Authors and Affiliations

  1. University of California at Berkeley, USA

    Candace Yano

  2. University of Rochester, USA

    Gregory Dobson

Authors
  1. Candace Yano
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  2. Gregory Dobson
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Editor information

Editors and Affiliations

  1. Anderson School at UCLA, USA

    Teck-Hua Ho  & Christopher S. Tang  & 

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© 1998 Springer Science+Business Media New York

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Yano, C., Dobson, G. (1998). Profit-Optimizing Product Line Design, Selection and Pricing with Manufacturing Cost Consideration. 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_8

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  • DOI: https://doi.org/10.1007/978-1-4615-5579-7_8

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4613-7552-4

  • Online ISBN: 978-1-4615-5579-7

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