Product-line planning under uncertainty

Date

2022-02-01

Author

Karakaya, Şakir
Köksal, Gülser

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

394
views

32
downloads

This study addresses a multi-period product-line-mix problem considering product interdependencies and uncertainties regarding price, demand, production cost, and the cannibalization effect of new products. The problem is modeled as a two-stage stochastic program. In the first-stage, decisions for the release times of new product-lines and capacity expansion are made without waiting for the realization of random events. Sales volumes are determined in the second-stage after more information about uncertainties is revealed. The solution approach employs a sample average approximation technique based on the Monte Carlo bounding, and multi-cut version of the L-shaped method to solve approximate problems efficiently. The model and solution approach are tested on different cases considering the value-of-stochastic-solution (VSS) and the expected-value-of-perfect-information (EVPI) as performance measures, under the assumption that the decision-maker is risk-neutral. Data collected through experimental studies are analyzed using ANOVA and Random Forest method to determine the impact of both deterministic and uncertain parameters on the performance of the stochastic approach, and to generate some rule-based inferences about the behavior of the proposed model. The results demonstrate the problem environments in which the stochastic model can generate the highest benefit to the business. It is mainly found the model can provide more expected profit than the mean-value solution in problems having uncertainties, particularly when selling prices and production costs are uncertain.

URI

https://hdl.handle.net/11511/93904

Journal

Computers and Operations Research

DOI

https://doi.org/10.1016/j.cor.2021.105565

Collections

Department of Industrial Engineering, Article

Suggestions

OpenMETU
Core

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...
Product Line Planning Under Uncertainty Karakaya, Şakir; Köksal, Gülser (2018-11-01) This study addresses the problem of multi-period mix of product-lines under a product family, which incorporates launching decisions of new products, capacity planning decisions and product interdependencies. The problem is modeled as a two-stage stochastic program in which price, demand, production cost and cannibalisation effect of new products are characterized as uncertain parameters. The solution approach employs the Monte Carlo bounding technique and Lshaped method, which is tested on real-like cases ...
Optimal pricing and production decisions in utilizing reusable containers Atamer, Busra; Bakal, İsmail Serdar; Bayındır, Zeynep Pelin (2013-06-01) In this study, we focus on pricing and production decisions in utilizing reusable containers with stochastic customer demand. We consider a manufacturer that sells a single product to the customers in reusable containers with two supply options: (i) brand-new containers and (ii) returned containers from customers. The return quantity depends on both customer demand and the acquisition fee determined by the manufacturer. The unit cost of production using brand-new containers is different than the unit cost o...
Product diversification and profitability a case study: Vestel A.Ş. Akgül, Banu; Erdil, Erkan; Doğan, Kutsal; Department of Economics (2015) The aim of this study is to examine the effect of diversification on the profitability of a firm. To this end, Vestel Co. is examined by conducting an econometric analysis with panel data gathered from different departments of the firm. Importance and the most significant contribution of this study to the literature is that it analyzes a single firm in contrast to the studies including lots of firms operating in the same sector; and this allows us to examine the effect of diversification over time, through ...
Optimal pricing and production decisions in reusable container systems Atamer, Büşra; Bakal, İsmail Serdar; Department of Industrial Engineering (2010) In this study, we focus on pricing and production decisions in reusable container systems with stochastic demand. We consider a producer that sells a single product to the customers in reusable containers with two supply options: (i) brand-new containers, (ii) returned containers from customers. Customers purchasing the products may return the containers to the producer to receive a deposit price. The return quantity depends on both customer demand and the deposit price determined by the producer. Hence, th...

Citation Formats

Ş. Karakaya and G. Köksal, “Product-line planning under uncertainty,” Computers and Operations Research, vol. 138, pp. 0–0, 2022, Accessed: 00, 2021. [Online]. Available: https://hdl.handle.net/11511/93904.