Conference paper
Product portfolio optimization based on substitution
Department of Management Engineering, Technical University of Denmark1
Management Science, Department of Management Engineering, Technical University of Denmark2
Operations Management, Management Science, Department of Management Engineering, Technical University of Denmark3
Department of Mechanical Engineering, Technical University of Denmark4
Engineering Design and Product Development, Department of Mechanical Engineering, Technical University of Denmark5
The development of production capabilities has led to proliferation of the product variety offered to the customer. Yet this fact does not directly imply increase of manufacturers' profitability, nor customers' satisfaction. Consequently, recent research focuses on portfolio optimization through substitution and standardization techniques.
However when re-defining the strategic market decisions are characterized by uncertainty due to several parameters. In this study, by using a GAMS optimization model we present a method for supporting strategic decisions on substitution, by quantifying the impact of those parameters. Empirical evidence supplements the research, where a case study from an industry company producing construction material demonstrates the results.
Language: | English |
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Publisher: | IEEE |
Year: | 2017 |
Pages: | 1651-1655 |
Proceedings: | 2017 IEEE International Conference on Industrial Engineering and Engineering Management |
ISBN: | 1538609487 , 1538609495 , 9781538609484 , 9781538609491 , 1538609479 and 9781538609477 |
ISSN: | 2157362x and 21573611 |
Types: | Conference paper |
DOI: | 10.1109/IEEM.2017.8290173 |
ORCIDs: | Myrodia, Anna , Trattner, Alexandria Lee and Hvam, Lars |
Companies Complexity theory GAMS optimization model Indexes Mathematical model Optimization Portfolios Product substitution Profitability building materials complexity management construction material decision making investment marketing optimisation portfolio optimization product customisation product portfolio optimization product variety product variety proliferation production capabilities strategic market decisions strategic planning substitution technique