Product Variety Management Research Advances
Product proliferation has become a common phenomenon. Most companies now offer hundreds, if not thousands, of stock keeping units (SKUs) in order to compete in the market place. Companies with expanding product and service varieties face with problems of
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INTERNATIONAL SERIES IN OPERATIONS RESEARCH & MANAGEMENT SCIENCE Frederick S. Hillier, Series Editor Department of Engineering-Economic Systems and Operations Research Stanford University Stanford, California Saigal, Romesh LINEAR PROGRAMMING: A Modern Integrated Analysis Nagurney, Anna/ Zhang, Ding PROJECTED DYNAMICAL SYSTEMSAND VARIATIONAL INEQUALITIES WITH APPLICATIONS Padberg, Manfred/ Rijal, Minendra P. LOCATION SCHEDULING, DESIGN AND INTEGER PROGRAMMING Vanderbei, Robert J. LINEAR PROGRAMMING: Foundations and Extensions Jaiswal, N.K. MILITARY OPERATIONS RESEARCH: Quantitative Decision Making Gal, Tomas / Greenberg, Harvey J. ADVANCES IN SENSITIVITY ANALYSIS AND PARAMETRIC PROGRAMMING Prabhu, N.U. FOUNDATIONS OF QUEUEING THEORY Fang, S.-C./Rajasekera, J.R./ Tsao, H.-SJ. ENTROPY OPTIMIZATION AND MATHEMATICAL PROGRAMMING Yu, Gang OPERA TIONS RESEARCH IN THE AIRLINE INDUSTRY
Product Variety Management Research Advances
Edited by Teck-Hua Ho and Christopher S. Tang Anderson School at UCLA
Springer Science+Business Media, LLC
Library of Congress Cataloging-in-Publication Data Product variety management: research advances / edited by Teck-Hua Ho and Christopher S. Tang. p. cm. — (International series in operations research & management science; 10) ) and index. Includes bibliographical references (p. ISBN 978-1-4613-7552-4 ISBN 978-1-4615-5579-7 (eBook) DOI 10.1007/978-1-4615-5579-7 1. Product management. 2. Product lines — Management. I. Ho, Teck-Hua. II. Tang, 3. Diversification in industry. Christophers. III. Series. 1999 HF5415.15.P769 658.5-dc21 98-8736 CIP
Copyright © 1998 by Springer Science+Business Media New York Originally published by Kluwer Academic Publishers in 1998 Softcover reprint of the hardcover 1st edition 1998 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher,Springer Science+Business Media, L L C . Printed on acid-free paper.
Dedicated with Love To my wife, Ling Ling, To my mother, Ngor
TABLE OF CONTENTS
Preface Acknowledgements Introduction 1 Markets and Product Variety Management Kelvin Lancaster
IX XI Xlll
1
2
Variety: From the Consumer's Perspective Barbara Kahn
19
3 Product Structure, Brand Width and Brand Share luin-Kuan Chong, Teck-Hua Ho, and Christopher S. Tang
39
4 Value of Postponement Seungjin Whang and Hau Lee
65
5 Designing Task Assembly and Using Vanilla Boxes to Delay Product Differentiation: An Approach for Managing Product Variety Jayashankar M. Swaminathan and Sridhar R. Tayur
6 Design for Variety Mark Martin, Warren Hausman, and Kosuke Ishii
85
103
viii
7 Customer Preferences, Supply-Chain Costs, and Product-Line Design Fangruo Chen, Jehoshua Eliashberg, and Paul Zipkin
123
8 Profit-Optimizing Product Line Design, Selection and Pricing with Manufacturing Cost Consideration Candace Yano and Gregory Dobson
145
9
Managing Product Variety Karl Ulrich, T
