Managing Supply Chain Profits with Sale Price Decision in One Product Family
In response to different custom preferences and fast product life cycle, manufacturers add numerous product variants which are composed to be a product family. Some components in one product family can be shared and reused for time and cost reduction in design and manufacturing. The paper provides one mathematical model for understanding cost, profit, and sale price decision in the multi-stage supply chain of one product family. The supply chain is modeled as a network of stages in the paper. With the proposed mathematical model and the specific case involving a product family of cordless drills, numerical analysis under various product demand rate, supplier profit rate, procedure cost, product commonality, and quantity discount are conducted. The optimum sale price decision for the product family under the stochastic and price-sensitivity demand environment is also initially investigated. Coordinating strategies for sharing profits among the retailer and suppliers are discussed when cost is reduced.
Supply chain management pricing platform-based product family mass customization profit
Li QIAN David BEN-ARIEH Suresh Kaduru KUMAR
Department of Engineering Technology & Management,South Dakota State University,USA Department of Industrial and Manufacturing Systems Engineering,Kansas State University,USA
国际会议
北京
英文
2007-05-30（万方平台首次上网日期，不代表论文的发表时间）