Optimal Selection of Line Extensions: Incorporating Operational, Financial, and Marketing Constraints Academic Article

abstract

• 2014 IEEE. Line extensions-variants of existing products with new appearances, functions, or forms-constitute a significant fraction of products launched each year. While line extensions typically share components with existing products, they can also cannibalize the demand of existing products. The choice of an appropriate set of line extensions is an important recurring issue for a firm and they must incorporate constraints that arise naturally from operational, financial, and marketing considerations, resulting in an analytically challenging optimization problem. We consider several variants of this problem, develop efficient heuristics that deliver near-optimal solutions, and derive a variety of interesting insights on the inherent tradeoffs in the selection of line extensions.

authors

• Sriskandarajah, Chelliah

published proceedings

• IEEE TRANSACTIONS ON ENGINEERING MANAGEMENT

author list (cited authors)

• Mu, L., Dawande, M., Gavirneni, S., & Sriskandarajah, C.

citation count

• 2

complete list of authors

• Mu, Liying||Dawande, Milind||Gavirneni, Srinagesh||Sriskandarajah, Chelliah

publication date

• November 2014

publisher

• Institute of Electrical and Electronics Engineers (IEEE)  Publisher

published in

• IEEE Transactions on Engineering Management  Journal

keywords

• Budget Constraint
• Cardinality Constraint
• Line Extensions
• Polynomial-time Algorithms

Digital Object Identifier (DOI)

• 10.1109/TEM.2014.2327484

start page

• 738

end page

• 754

volume

• 61

issue

• 4

URL

• http%3A%2F%2Fdx.doi.org%2F10.1109%2Ftem.2014.2327484