Product mix determination under uncertainty within a framework proposed for effective product management

Feşel, N. Nilgün
In many real life problems, uncertainty is a major complexity for decision makers. A typical example to such a case is product mix problem. In this study, we develop a methodology to aid the decision makers in product mix determination at the strategic level of product management under uncertainty. The methodology is based on a simulation optimization approach by which scenarios are generated using a statistical design of experiment approach. To the best of our knowledge, this methodology developed to aid the decision maker in product mix determination is a novel and original approach. Our product mix model determines “how many” to produce from each product for each market where it will be sold. The decision maker questions the financial performance (profit) of the company by the results of the model. The product level is considered as product line and/or family since the product mix problem is handled at the strategic level of the product management framework. Depending on the best product mix and expected financial performance (profit) brought by the mix, the decision makers may choose to change their candidate product set and re-use our approach to find a new optimal product mix and its expected profit. In that sense the method developed in this study aids the decision maker by answering several “what-if” questions such as what profit level is obtained if the set of candidate products is changed, what happens to the profit level if a new market entrance is considered with the existing products, or if market conditions are volatile, what is the effect of these conditions to the level of profit, and so on. The model can also be used for budgeting purposes considering product breakdown and market disaggregation if and when necessary. The variants of the model are presented to serve these purposes. This information can be used as an input for aggregate production planning (APP) in which deterministic forecasts of demand for the aggregate products are used traditionally. In that sense, our method improves the traditional production management information system in APP. Further research directions involving extensions of the model and the solution approach are provided. Key words: product-mix, uncertainty, product management, simulation


Outsourced design management implementations : a stıudy conducted with firms and design consultancies in Turkey
Boğazpınar, Hakan; Gürsu, Hakan; Department of Industrial Design (2012)
This study aims to investigate the outsourced design management implementations along the alliances that are established between firms and design consultancies in Turkey, which have been analysed in a limited sense in the past. Within this context; information on, ‘why and how design is outsourced’ and ‘how the design process is managed’ are derived through semi-structured interviews in conjunction with structured questionnaire conducted with managers from a sample selection of design and manufacturing firm...
Production and stock management under manufacturer and customer driven substitution
Töre, Nurşen; Savaşaneril Tüfekci, Seçil; Department of Industrial Engineering (2014)
In this thesis, the stock management problem of a manufacturer is studied in the presence of product substitution flexibility. The study consists of two parts. In the first part, the manufacturer's joint production scheduling and product substitution decisions are analyzed. It is assumed that there are multiple substitutable items and for each item, and inventory is kept separately. If upon demand arrival, stock is not available, then demand is backordered. Depending on the inventory level, it is possible t...
Product-line planning under uncertainty
Karakaya, Şakir; Köksal, Gülser; Department of Industrial Engineering (2018)
This study addresses the problem of multi-period mix of product-lines under a product- family, which incorporates launching decisions of new products, capacity expansion decisions and product interdependencies. The problem is modelled as a two-stage stochastic program with recourse in which price, demand, production cost and cannibalisation effect of new products are treated as uncertain parameters. The solution approach employs the Sample Average Approximation based on Monte Carlo bounding technique and mu...
Flexibility analysis: a methodology and a case study
Kahyaoglu, Y; Kayaligil, S; Buzacott, JA (Informa UK Limited, 2002-11-10)
A methodology for analysing manufacturing flexibility is proposed. A real-life case is discussed to demonstrate the proposed methodology. The case involves the grinding operations of an engine manufacturer. As an integral part of the methodology, statistical analyses using response surface methodology are carried out. Potential applications of the proposed methodology are discussed. Planning models and flexibility measure used are outlined in the appendices.
Strategic Group Analysis in the Construction Industry
Dikmen Toker, İrem; Birgönül, Mustafa Talat (American Society of Civil Engineers (ASCE), 2009-04-01)
The aim of strategic group analysis is to determine whether clusters of firms that have a similar strategic position exist within an industry or not. Findings of strategic group analysis may further be used to investigate the performance implications of strategic group membership. The objective of this paper is to identify the possible strategic groups that could exist within the Turkish construction industry by using a theoretical framework applicable for the construction industry and alternative statistic...
Citation Formats
N. N. Feşel, “Product mix determination under uncertainty within a framework proposed for effective product management,” Ph.D. - Doctoral Program, Middle East Technical University, 2013.