IDEAS home Printed from https://ideas.repec.org/a/spr/sjobre/v54y2002i7d10.1007_bf03372688.html
   My bibliography  Save this article

Produktliniengestaltung mit Genetischen Algorithmen

Author

Listed:
  • Winfried J. Steiner

    (Universität Regensburg)

  • Harald Hruschka

    (Universität Regensburg)

Abstract

Summary Designing and pricing single products or product lines is one of the most important problem areas of a firm. In this contribution, a new conjoint-based optimal product line design model with special focus on profit maximizing firms is presented. The model allows the inclusion of consumers’ preferences, counterpart products of competitors as well as variable and fixed costs. Moreover, flexible probabilistic choice modeling is supported using the conditional multinomial logit model. A genetic algorithm is proposed for solving the product line design problem and, as a result of performance evaluation, is proved to be a promising solution technique. In particular, the performance of the genetic algorithm is compared with Green and Krieger’s well-known greedy heuristic which has received much application to realworld product line problems.

Suggested Citation

  • Winfried J. Steiner & Harald Hruschka, 2002. "Produktliniengestaltung mit Genetischen Algorithmen," Schmalenbach Journal of Business Research, Springer, vol. 54(7), pages 575-601, November.
    • Handle: RePEc:spr:sjobre:v:54:y:2002:i:7:d:10.1007_bf03372688
    DOI: 10.1007/BF03372688
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/BF03372688
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1007/BF03372688?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Suresh K. Nair & Lakshman S. Thakur & Kuang-Wei Wen, 1995. "Near Optimal Solutions for Product Line Design and Selection: Beam Search Heuristics," Management Science, INFORMS, vol. 41(5), pages 767-785, May.
    2. Gregory Dobson & Shlomo Kalish, 1988. "Positioning and Pricing a Product Line," Marketing Science, INFORMS, vol. 7(2), pages 107-125.
    3. Green, Paul E. & Krieger, Abba M., 1989. "Recent contributions to optimal product positioning and buyer segmentation," European Journal of Operational Research, Elsevier, vol. 41(2), pages 127-141, July.
    4. P. V. (Sundar) Balakrishnan & Varghese S. Jacob, 1996. "Genetic Algorithms for Product Design," Management Science, INFORMS, vol. 42(8), pages 1105-1117, August.
    5. Paul E. Green & Abba M. Krieger, 1992. "An Application of a Product Positioning Model to Pharmaceutical Products," Marketing Science, INFORMS, vol. 11(2), pages 117-132.
    6. S. Chan Choi & Wayne S. Desarbo & Patrick T. Harker, 1990. "Product Positioning Under Price Competition," Management Science, INFORMS, vol. 36(2), pages 175-199, February.
    7. Rajeev Kohli & R. Sukumar, 1990. "Heuristics for Product-Line Design Using Conjoint Analysis," Management Science, INFORMS, vol. 36(12), pages 1464-1478, December.
    8. Kohli, Rajeev & Krishnamurti, Ramesh, 1989. "Optimal product design using conjoint analysis: Computational complexity and algorithms," European Journal of Operational Research, Elsevier, vol. 40(2), pages 186-195, May.
    9. Paul E. Green & Abba M. Krieger, 1985. "Models and Heuristics for Product Line Selection," Marketing Science, INFORMS, vol. 4(1), pages 1-19.
    10. Rajeev Kohli & Ramesh Krishnamurti, 1987. "A Heuristic Approach to Product Design," Management Science, INFORMS, vol. 33(12), pages 1523-1533, December.
    11. Gregory Dobson & Shlomo Kalish, 1993. "Heuristics for Pricing and Positioning a Product-Line Using Conjoint and Cost Data," Management Science, INFORMS, vol. 39(2), pages 160-175, February.
    12. Richard D. McBride & Fred S. Zufryden, 1988. "An Integer Programming Approach to the Optimal Product Line Selection Problem," Marketing Science, INFORMS, vol. 7(2), pages 126-140.
    13. Steven M. Shugan & V. Balachandran, 1977. "A Mathematical Programming Model for Optimal Product Line Structuring," Discussion Papers 265, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Winfried Steiner & Harald Hruschka, 2002. "A Probabilistic One-Step Approach to the Optimal Product Line Design Problem Using Conjoint and Cost Data," Review of Marketing Science Working Papers 1-4-1003, Berkeley Electronic Press.
    2. Baier, Daniel & Gaul, Wolfgang, 1998. "Optimal product positioning based on paired comparison data," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 365-392, November.
    3. Albritton, M. David & McMullen, Patrick R., 2007. "Optimal product design using a colony of virtual ants," European Journal of Operational Research, Elsevier, vol. 176(1), pages 498-520, January.
    4. G. E. Fruchter & A. Fligler & R. S. Winer, 2006. "Optimal Product Line Design: Genetic Algorithm Approach to Mitigate Cannibalization," Journal of Optimization Theory and Applications, Springer, vol. 131(2), pages 227-244, November.
    5. Alexandre Belloni & Robert Freund & Matthew Selove & Duncan Simester, 2008. "Optimizing Product Line Designs: Efficient Methods and Comparisons," Management Science, INFORMS, vol. 54(9), pages 1544-1552, September.
    6. Leyuan Shi & Sigurdur Ólafsson & Qun Chen, 2001. "An Optimization Framework for Product Design," Management Science, INFORMS, vol. 47(12), pages 1681-1692, December.
    7. Alexouda, Georgia & Paparrizos, Konstantinos, 2001. "A genetic algorithm approach to the product line design problem using the seller's return criterion: An extensive comparative computational study," European Journal of Operational Research, Elsevier, vol. 134(1), pages 165-178, October.
    8. Daria Dzyabura & Srikanth Jagabathula, 2018. "Offline Assortment Optimization in the Presence of an Online Channel," Management Science, INFORMS, vol. 64(6), pages 2767-2786, June.
    9. Xinfang (Jocelyn) Wang & Jeffrey D. Camm & David J. Curry, 2009. "A Branch-and-Price Approach to the Share-of-Choice Product Line Design Problem," Management Science, INFORMS, vol. 55(10), pages 1718-1728, October.
    10. Tan Wang & Genaro Gutierrez, 2022. "Robust Product Line Design by Protecting the Downside While Minding the Upside," Production and Operations Management, Production and Operations Management Society, vol. 31(1), pages 194-217, January.
    11. Wilhelm, Wilbert E. & Xu, Kaihong, 2002. "Prescribing product upgrades, prices and production levels over time in a stochastic environment," European Journal of Operational Research, Elsevier, vol. 138(3), pages 601-621, May.
    12. Day, Jamison M. & Venkataramanan, M.A., 2006. "Profitability in product line pricing and composition with manufacturing commonalities," European Journal of Operational Research, Elsevier, vol. 175(3), pages 1782-1797, December.
    13. Dimitris Bertsimas & Velibor V. Mišić, 2019. "Exact First-Choice Product Line Optimization," Operations Research, INFORMS, vol. 67(3), pages 651-670, May.
    14. Jeffrey D. Camm & James J. Cochran & David J. Curry & Sriram Kannan, 2006. "Conjoint Optimization: An Exact Branch-and-Bound Algorithm for the Share-of-Choice Problem," Management Science, INFORMS, vol. 52(3), pages 435-447, March.
    15. Tallys H. Yunes & Dominic Napolitano & Alan Scheller-Wolf & Sridhar Tayur, 2007. "Building Efficient Product Portfolios at John Deere and Company," Operations Research, INFORMS, vol. 55(4), pages 615-629, August.
    16. Kraus, Ursula G. & Yano, Candace Arai, 2003. "Product line selection and pricing under a share-of-surplus choice model," European Journal of Operational Research, Elsevier, vol. 150(3), pages 653-671, November.
    17. Tarasewich, Peter & McMullen, Patrick R., 2001. "A pruning heuristic for use with multisource product design," European Journal of Operational Research, Elsevier, vol. 128(1), pages 58-73, January.
    18. Kamalini Ramdas & Mohanbir S. Sawhney, 2001. "A Cross-Functional Approach to Evaluating Multiple Line Extensions for Assembled Products," Management Science, INFORMS, vol. 47(1), pages 22-36, January.
    19. Dimitris Bertsimas & Velibor V. Mišić, 2017. "Robust Product Line Design," Operations Research, INFORMS, vol. 65(1), pages 19-37, February.
    20. V. Krishnan & Karl T. Ulrich, 2001. "Product Development Decisions: A Review of the Literature," Management Science, INFORMS, vol. 47(1), pages 1-21, January.

    More about this item

    Keywords

    C61; M3;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sjobre:v:54:y:2002:i:7:d:10.1007_bf03372688. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.