Product Line Design with Component Commonality and Cost-Reduction Effort

@article{Heese2006ProductLD,
  title={Product Line Design with Component Commonality and Cost-Reduction Effort},
  author={Hans Sebastian Heese and Jayashankar M. Swaminathan},
  journal={Manufacturing & Service Operations Management},
  year={2006},
  volume={8},
  pages={206-219}
}
M pressure for low prices paired with customer demand for high product variety presents a considerable dilemma for many manufacturers. Industry practice and research to date suggest that approaches based on component commonality can substantially lower the costs of proliferated product lines, but at the cost of reducing product differentiation and revenues. We analyze a stylized model of a manufacturer who designs a product line consisting of two products for sale to two market segments with… CONTINUE READING

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