Co-ordinated planning for competitive products and their manufacturing operations

Chakravarty, Amiya K.; Baum, Jens

doi:10.1080/00207549208948156

Cited by 8 publications

(3 citation statements)

References 3 publications

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“…While Eriksen and Berger (1987), Green and Kreiger (1992), and Cook and Gill (1993) consider attribute level-specific costs, they do not recognize the process dependence of these costs, and therefore, do not deal with process selection. Chakravarty and Baum (1992) propose a product line design model that incorporates process selection, and use it to illustrate the interactions among several marketing and manufacturing variables. Unlike the model presented here, however, they do not consider product price to be a decision variable, and they do not model the product selection decision for each customer individually on the basis of surplus maximization.…”

Section: The Frameworkmentioning

confidence: 99%

Simultaneous determination of product attributes and prices, and production processes in product‐line design

Raman

Chhajed

1995

J of Ops Management

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Global competition, rapid changes in technology, and market fragmentation have resulted in shorter product life cycles. In order to remain viable, it is increasingly important for firms to introduce new products frequently. Product design is a complex process that involves coordination of activities among several functional disciplines within the company as well as the customers and the suppliers. Traditionally, the information flow among the various product development stages has been sequential. However, there is increasing evidence to suggest that an integrated approach that considers several stages simultaneously may be superior.This paper provides a decision support tool for implementing such an integrated approach. On the basis of given customer preferences, the paper presents a model for determining the number of new products to be introduced, the exact specifications of these products, and the production processes for efficiently delivering these specifications. These decisions are made in an integrated manner by simultaneously considering the interaction among the various choice variables. A decomposition-based solution procedure is developed that iterates between the product design and process selection decisions while maintaining an effective link between them.In addition to understanding the economic value of adopting the integrated approach to product design, the paper discusses how the proposed model can be used effectively to perform sensitivity analysis with respect to some of the important decision variables.

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Section: The Frameworkmentioning

confidence: 99%

Simultaneous determination of product attributes and prices, and production processes in product‐line design

Raman

Chhajed

1995

J of Ops Management

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“…Various models have been derived for designing the product family instead of a single product to reduce the cost concerns of increased product variety, as Yano and Dobson (1998) reviewed. Chakravarty and Baum (1992) formulate a product family model incorporating process selection and use it to illustrate the interactions with some marketing and manufacturing variables. Saurabh and Krishnan (1999) examine the reduction in complexity of a product family by product design.…”

Section: Introductionmentioning

confidence: 99%

Coordinating pricing and inventory decisions in a multi-level supply chain: A game-theoretic approach

Huang¹,

Huang²,

Newman

2011

Transportation Research Part E: Logistics and Transportation Re

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This paper concerns coordination of enterprise decisions such as suppliers and components selection, pricing and inventory in a multi-level supply chain composed of multiple suppliers, a single manufacturer and multiple retailers. The problem is modeled as a three-level dynamic non-cooperative game. Analytical and computational methods are developed to determine the Nash equilibrium of the game. Finally, a numerical study in computer industry is conducted to understand the influence of the market scale parameter and the components selection strategy on the optimal decisions and profits of the supply chain as well as its constituent members. Several research findings have been obtained.components selection decisions to maximize his net profit. The retailers' problem will focus on the replenishment cycles and retail prices for the products.We describe CSCSPI problem as a three-level dynamic non-cooperative game with respect to the overall supply chain. The suppliers formulate the bottom-level non-cooperative simultaneous sub-game and at the same time as a whole play the middle-level non-cooperative simultaneous sub-game with the manufacturer. The suppliers and the manufacturer also being a group formulate the top-level non-cooperative simultaneous whole game with the retailers. Once the whole game settles an equilibrium solution, none of the any chain members is able to improve its payoff (i.e. profits) by acting unilaterally without degrading the performance of other players. We propose both analytical and computational methods to obtain the Nash equilibrium of this game.The game model and the proposed solution algorithm constitute a powerful decision support for solving the CSCSPI problem. Its use is demonstrated and tested through a numerical example. The impacts of the market scale parameter and components selection on the decisions and profits of all the chain members are also investigated.This paper is structured as follows. The next section presents a brief review of the literature related to pricing and inventory coordination, product family design, Game Theory for supply chain coordination. In Section 3, we give the problem description and some notations. We formulate the mathematical model of the CSCSPI problem in Section 4. Section 5 proposes the analytical and computational methods used to solve the CSCSPI problem in Section 4. In Section 6, a numerical study and the influence of market scale parameter and the components selection strategy have been presented. Finally, this paper concludes in Section 7 with some limitations and suggestions for further work. Literature reviewPricing, inventory decisions, and product family design and platform products development, have been extensively studied in supply chain coordination. Although the three areas are closely interrelated with each other, they are rarely been studied in an integrated, systematic manner. Recently, Game Theory (GT) has also been applied to analyze supply chain coordination problem. This section will briefly review a few representative work...

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“…For a competitive product design, knowledge of the trade-off between market share gain and manufacturing cost with respect to attribute bundle and product features is therefore a necessity (Hayes and Wheelwright 1984;Hill 1989;Chakravarty and Ghose 199 1). The nature of such trade-offs is an extremely under-researched area (Johnson 1987;Chakravarty and Baum 1992). To be generalized, relationships between attribute levels and product features; product features and manufacturing steps; and manufacturing steps and manufacturing capacity, inventory, backlogs, and so on must be determined.…”

Section: Introductionmentioning

confidence: 99%

Tracking Product‐process Interactions: A Research Paradigm*

Chakravarty

Ghose

1993

Production and Operations Management

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To design (or redesign) a competitive product, it is imperative that both the sales and manufacturing cost implications are assessed in a structured way. That is, the interactive (multidimensional) aspects of manufacturing and marketing variables need to be positioned in a proper perspective so that the system impact of variation in one or more variables may be ascertained quickly. In this paper we show how some of the system‐related paradigms can be used as foundations for developing quantitative and qualitative models for tracking such interactive ímpacts. The emphasis is not on building complex mathematical models to solve specific problems but on providing a framework where system properties expressed as simple postulates can be used in an intelligent way to assess the impact of improvements in specific product‐process scenarios.

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Co-ordinated planning for competitive products and their manufacturing operations

Cited by 8 publications

References 3 publications

Simultaneous determination of product attributes and prices, and production processes in product‐line design

Simultaneous determination of product attributes and prices, and production processes in product‐line design

Coordinating pricing and inventory decisions in a multi-level supply chain: A game-theoretic approach

Tracking Product‐process Interactions: A Research Paradigm*

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