Supply chain performance with various price-dependent demand functions and component commonality in one product family

Author

Qian, Li ; Kong, Zhenyu

Author_Institution

Dept. of Eng. Technol. & Manage., South Dakota State Univ., Brookings, SD

fYear

2008

fDate

23-26 Aug. 2008

Firstpage

760

Lastpage

765

Abstract

Manufacturers provide product variants in one product family to meet different customerspsila preferences. The product demand is stochastic and price-dependent. With the numerical analysis involving a product family of cordless drills, the paper investigates the effects of component commonality and various price-demand functions on the supply chain performance in profit. The benefit with component commonality is illustrated with the application case. Results show that optimal profits and sale prices of the product family could change significantly with a change of the price-dependent demand function.

Keywords

pricing; stochastic processes; supply and demand; supply chain management; component commonality; customer preference; numerical analysis; price-dependent demand function; product family; stochastic method; supply chain performance; Bridges; Costs; Manufacturing automation; Marketing and sales; Numerical analysis; Pricing; Product design; Stochastic processes; Supply chains; Virtual manufacturing;

fLanguage

English

Publisher

ieee

Conference_Titel

Automation Science and Engineering, 2008. CASE 2008. IEEE International Conference on

Conference_Location

Arlington, VA

Print_ISBN

978-1-4244-2022-3

Electronic_ISBN

978-1-4244-2023-0

Type

conf

DOI

10.1109/COASE.2008.4626535

Filename

4626535