Product Line Optimization as a Two Stage Problem

Bernd Stauß () and Wolfgang Gaul ()
Additional contact information
Bernd Stauß: Universität Karlsruhe
Wolfgang Gaul: Universität Karlsruhe

A chapter in Operations Research Proceedings 2004, 2005, pp 246-253 from Springer

Abstract: Abstract Optimizing product lines is the task of planning the joint offer of multiple substitutes concurrently. Actually, this resembles the design of a choice menu where consumers are supposed to choose at most one item from a set of alternatives. In this paper we model the product line optimization problem by decomposing it into two stages. Product decision is done in the first stage by anticipating possible outcomes of the subsequent (price) stage. This so-called hierarchical decision situation is considered due to uncertainty about consumers’ tastes. Results suggest that substantial increase of expected profit can be drawn from the hierarchical approach.

Keywords: Reservation Price; Vehicle Route Problem; Hierarchical Approach; Participation Constraint; Revenue Management (search for similar items in EconPapers)
Date: 2005
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:oprchp:978-3-540-27679-1_31

Ordering information: This item can be ordered from
http://www.springer.com/9783540276791

DOI: 10.1007/3-540-27679-3_31

Access Statistics for this chapter

More chapters in Operations Research Proceedings from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().