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Article
An Exploration on the Use of Data Envelopment Analysis for Product Line Selection
Journal of Industrial Engineering & Management Systems (2009)
  • Gül E. Okudan, The Pennsylvania State University
  • Chun-Yu Lin, The Pennsylvania State University
Abstract
We define product line (or mix) selection problem as selecting a subset of potential product variants that can simultaneously minimize product proliferation and maintain market coverage. Selecting the most efficient product mix is a complex problem, which requires analyses of multiple criteria. This paper proposes a method based on Data Envelopment Analysis (DEA) for product line selection. Data Envelopment Analysis (DEA) is a linear programming based technique commonly used for measuring the relative performance of a group of decision making units with multiple inputs and outputs. Although DEA has been proved to be an effective evaluation tool in many fields, it has not been applied to solve the product line selection problem. In this study, we construct a five-step method that systematically adopts DEA to solve a product line selection problem. We then apply the proposed method to an existing line of staplers to provide quantitative evidence for managers to generate desirable decisions to maximize the company profits while also fulfilling market demands. 
Keywords
  • Product Line Selection,
  • Data Envelopment Analysis
Publication Date
2009
Publisher Statement
Copyright 2009 IEMS
Citation Information
Gül E. Okudan and Chun-Yu Lin. "An Exploration on the Use of Data Envelopment Analysis for Product Line Selection" Journal of Industrial Engineering & Management Systems Vol. 8 Iss. 1 (2009) p. 47 - 53
Available at: http://works.bepress.com/gul-kremer/22/