An Optimization Framework for Product Design

Leyuan Shi (), Sigurdur Ólafsson () and Qun Chen ()
Additional contact information
Leyuan Shi: Department of Industrial Engineering, University of Wisconsin-Madison, Madison, Wisconsin 53706
Sigurdur Ólafsson: Department of Industrial and Manufacturing Systems Engineering, Iowa State University, Ames, Iowa 50011
Qun Chen: Department of Industrial Engineering, University of Wisconsin-Madison, Madison, Wisconsin 53706

Management Science, 2001, vol. 47, issue 12, 1681-1692

Abstract: An important problem in the product design and development process is to use the part-worths preferences of potential customers to design a new product such that market share is maximized. The authors present a new optimization framework for this problem, the nested partitions (NP) method. This method is globally convergent and may utilize existing heuristic methods to speed its convergence. We incorporate several known heuristics into this framework and demonstrate through numerical experiments that using the NP method results in superior product designs. Our numerical results suggest that the new framework is particularly useful for designing complex products with many attributes.

Keywords: Product Design; Optimization; Heuristics; Marketing; Conjoint Analysis (search for similar items in EconPapers)
Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.47.12.1681.10243 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:47:y:2001:i:12:p:1681-1692

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().