State-dependent behavioral models for designing a multi-generation product lineIIE Annual Conference (2011)
In today's market, multiple-generation product strategies are widely used by companies in various industries. Multiple-generation of products can be regarded as a product line. Adopting multiple-generation product strategies elongates the entire life cycle and relaxes the development time span; thus, companies can better utilize resources and technologies to plan for generations of products. In this research, a new framework is proposed to aid companies in designing a forward-looking multiple-generation product line for existing product types. The framework adopts concepts from the behavioral ecology field, and considers a product line as a living organism, and all the potential market strategies are regarded as potential behaviors. The problem is modeled with a dynamic state variable model. Potential exterior events are assumed to appear stochastically, such as sales variations resulting from the use of market strategies, and following predetermined rules. A case study implements the proposed framework to the IBM mainframe computers data derived from Mahajan and Muller . The results show that the proposed framework closely predicts the behaviors of multiple-generation product lines.
- Dynamic State Variable Models,
- Stochastic Dynamic Programming,
- Multiple Generations Product Line
Citation InformationChun-Yu Lin and Gül E. Kremer. "State-dependent behavioral models for designing a multi-generation product line" IIE Annual Conference (2011)
Available at: http://works.bepress.com/gul-kremer/146/