Concurrent design of product family and supply chain network considering quality and price |
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| Affiliation: | 1. Bayreuth University, Bayreuth, Germany;2. Newcastle Business School, University of Newcastle, Newcastle, Australia;1. Stevens Institute of Technology, United States;2. Athabasca University, Canada;1. Instituto de Economía and EH Clio Lab, Pontificia Universidad Católica de Chile, Avda. Vicuña Mackenna 4860, Macul, Santiago, Chile;2. Institute for the Study of Labor, IZA, Germany;3. Escuela de Administración and EH Clio Lab, Pontificia Universidad Católica de Chile, Avda. Vicuña Mackenna 4860, Macul, Santiago, Chile;4. Inter-American Development Bank, 1300 New York Ave, NW, Washington, DC 20577, United States |
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| Abstract: | We study the problem of concurrent design of a product family and its supply chain (SC) network. Inspired by a real-life case in computer industry, the impact of quality and price in SC demand is investigated. Two different models are proposed, the former maximizes the company’s profit with respect to customers’ priorities on quality and price; the latter is a bi-objective programming, which consider two extreme customer groups: for one group quality has the highest priority and for the other price; the intermediate groups falls between these two. The performance of the models is analyzed through a case problem. |
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| Keywords: | Product configuration design Quality and price Concurrent design Product family Mass customization |
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