Customer preference based optimization in selecting product/service variety

Nishino, Nariaki; Takenaka, Tohru; Koshiba, Hitoshi; Kodama, Keita

doi:10.1016/j.cirp.2014.03.109

Cited by 16 publications

(10 citation statements)

References 6 publications

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“…Toward value co-creation with customers, Nishino et al emphasised a customer's preference and modelled an optimization framework incorporating the concept of preference order in economics [87]. Platform-type product service systems are modelled with a game theoretic framework; several categorizations of platform business structure were conducted [89].…”

Section: Research Examples Addressing Value Co-creationmentioning

confidence: 99%

Value creation in production: Reconsideration from interdisciplinary approaches

et al. 2018

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This paper presents reconsideration of value creation in production from various aspects of value viewpoints in several disciplines such as production engineering, social sciences, and human sciences. The focal point of investigations is value co-creation by the provision of products and services in and for society. In the past, some methods of social sciences and others proved to be useful in making production more efficient. At present, such methods must help to realise value creation. In fact, production must become more effective in response to human needs in social, economic, and environmental dimensions. Along with the theoretical apparatus, this paper presents some case studies indicating the importance of value creation in production, followed by future perspectives of value cocreation in production.

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Section: Research Examples Addressing Value Co-creationmentioning

confidence: 99%

Value creation in production: Reconsideration from interdisciplinary approaches

et al. 2018

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“…The existing literature can be basically divided between marketing and operations management. The marketing area shows the idea that a high product variety allows a company to satisfy heterogeneous customers and increase the probability of sale (Yu, 2012), which is also valid for the service industry, which has points of customer contact, thus product/service variety management is crucial for daily business (Nishino et al , 2014). On the other hand, the operations area is concerned with operating costs, product quality, manufacturing flexibility (Boer and Boer, 2019), SKU rationalization (Malinowski et al , 2018), inventory management and on-time delivery (Patel and Jayaram, 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

“…The marketing literature indicates that increased product variety helps to increase sales performance (Nishino et al , 2014; Berger et al , 2007; Lancaster, 1990), while the operation management literature suggests that product variety may negatively affect inventory turnover (Wan et al , 2019, Wan and Sanders, 2017). The nature of the product variety-cost-sales performance relationship is not clear, and empirical evidence about whether and how operations cost and sales performance increases with variety is inconclusive.…”

Section: Introductionmentioning

confidence: 99%

The impact of product variety on fill rate, inventory and sales performance in the consumer goods industry

Santos

Sampaio

Alliprandini

2020

JMTM

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PurposeThe impact of product variety decisions on fill rate, inventory and sales performance in a consumer goods company has been examined. From a marketing perspective, it is possible to leverage sales, reach new segments and consequently increase competitiveness when there is a greater product variety on the market. However, operations and logistics professionals indicate potential impacts on the supply chain, such as production, storage and distribution complexity. The nature of the product variety-cost-sales performance relationship is not clear, and empirical evidence about whether and how operations cost and sales performance increases with variety is inconclusive.Design/methodology/approachThe multiple linear regression and the Tobit regression techniques were applied over a seven-year horizon of data from a business intelligence platform of a consumer goods company.FindingsOur results show that sales performance is negatively associated with product variety. The total effect of product variety on sales performance has been examined, including both the direct effect and the indirect effect through inventory and fill rate. Therefore, the findings provide a comprehensive understanding of the impact of product variety on operations and sales performance.Originality/valueSeveral studies have researched the impact of product variety on fill rate, inventory and sales performance separately; however, the research of the impact and the relationship of these factors is scarce and limited.

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“…A way to measure the relative indifference between different characteristics called Fuzzy Indifference Degree (FID) is proposed to select the product closest to their preferences [31]. Based on the preference order from the economic theory, Nishino used Frequent Shopper Program data of a large shopping mall in Japan to optimize the variety of shops, which can satisfy various customer preferences at a reasonable profit level [32]. Fuzzy regression methods have commonly been used to develop consumer preference models, which link the engineering characteristics with consumer preferences regarding a new product.…”

Section: B Customer Demand Analysismentioning

confidence: 99%

Service Satisfaction Evaluation of Customer Preference-Driven Public Warehousing Product Service Systems for Small- and Medium-Sized Enterprises in an Industrial Park

Ding

Zhang

et al. 2019

IEEE Access

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Facing fierce market competitions and fast technological transformation, manufacturing enterprises eagerly aspire to cut down investments in non-core businesses with the low return such as logistics, warehousing, and machine maintenance. In the context of service-oriented manufacturing (SOM), these non-core businesses are expected to be undertaken by third-party service providers in a centralized product + service manner. Supported by SOM principles, public warehousing product-service system (PW-PSS) is defined as integration of public warehouses and related warehousing services (e.g., raw material purchasing, work-in-progress storing/sorting/monitoring, and finished products packaging/distribution) for different manufacturing enterprises in an industrial park (IP). PW-PSS especially benefits for small-and medium-sized enterprises (SMEs) who are suffering from a heavy investment and management burden of self-built warehouses. To well operate the PW-PSS, third-party service providers must improve the service satisfaction degree of customers (i.e., manufacturing enterprises) to attract their continuous cooperation. This paper proposes a service satisfaction evaluation (SSE) method considering customer preferences to ensure the PW-PSS solutions more reliable and reasonable. First, the standard impact loss method is adopted to determine the initial weights of SSE indexes, and then the Kano model is used to adjust the above weights based on the consideration of customer preferences. Second, according to whether an SSE index is profitoriented or cost-oriented, a positive or negative distance is obtained based on a distance average solution method. Finally, an example is given to verify the proposed method. It is expected that SSE can provide a decision-making basis for SMEs in an IP to choose optimal PW-PSS solutions. INDEX TERMS Customer preference, product service system (PSS), public warehouse, service-oriented manufacturing (SOM), service satisfaction evaluation (SSE). QINGTAO LIU received the B.S. degree in mechanical design, manufacturing, and automation from the North China University of Water Resources and Electric Power, Zhengzhou, China, in 2006, and the M.S. and Ph.D. degrees in manufacturing and automation from Chang'an University, Xi'an, China, in 2009 and 2011, respectively, where he is currently a Lecturer with the Department of Manufacturing Automation, School of Construction Machinery. His current research interests include green manufacturing and sustainable manufacturing.

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Customer preference based optimization in selecting product/service variety

Cited by 16 publications

References 6 publications

Value creation in production: Reconsideration from interdisciplinary approaches

Value creation in production: Reconsideration from interdisciplinary approaches

The impact of product variety on fill rate, inventory and sales performance in the consumer goods industry

Service Satisfaction Evaluation of Customer Preference-Driven Public Warehousing Product Service Systems for Small- and Medium-Sized Enterprises in an Industrial Park

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