Abstract
Companies producing customized products tend to increase the variety of their product portfolio, in
order to fulfill the demand of their customers and align their strategies with those of competitors.
However, the profitability of product families may vary greatly. The purpose of this paper is to develop
an operational method to analyze profitability of Configure-To-Order (CTO) products. The operational
method consists of a four-step: analysis of product assortment, profitability analysis on configured
products, market and competitor analysis and, product assortment scenarios analysis. The proposed
operational method is firstly developed based on both available literature and practitioners experience
and subsequently tested on a company that produces CTO products. The results from this application
are further discussed and opportunities for further research identified.
Original language | English |
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Journal | International Journal of Industrial Engineering and Management |
Volume | 5 |
Issue number | 4 |
Pages (from-to) | 195-206 |
ISSN | 2217-2661 |
Publication status | Published - 2014 |
Keywords
- Configure-To-Order products
- Operational method
- Product variety
- Profitability analysis