Abstract
Product configuration systems are among the most popular expert systems for automating sales and manufacturing processes. Therefore, there are numerous studies on the qualitative
benefits and quantitative profitability of configurators considering the required investments. This paper uses real case company data to demonstrate the most cost efficient and viable products for investment in configurators by calculating the profitability of the product types. ABC analysis (A, B and C categorization) is conducted to calculate the net profit and gross margins to be able to classify the products based on the available 3-years data. We categorize the products into A-, B- and C-products based on ABC analysis and Pareto principle to calculate both the net profits and sale quantity of different product types. The demonstrated case study reveals that the analysis of the products based on ABC analysis of the quantity of sales and net profits will be a suitable solution to prioritize and predict the most financially viable investments for the future configuration projects.
benefits and quantitative profitability of configurators considering the required investments. This paper uses real case company data to demonstrate the most cost efficient and viable products for investment in configurators by calculating the profitability of the product types. ABC analysis (A, B and C categorization) is conducted to calculate the net profit and gross margins to be able to classify the products based on the available 3-years data. We categorize the products into A-, B- and C-products based on ABC analysis and Pareto principle to calculate both the net profits and sale quantity of different product types. The demonstrated case study reveals that the analysis of the products based on ABC analysis of the quantity of sales and net profits will be a suitable solution to prioritize and predict the most financially viable investments for the future configuration projects.
| Original language | English |
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| Title of host publication | Proceedings of the 21th International Configuration Workshop |
| Editors | Lothar Hotz, Michel Aldanondo, Thorsten Krebs |
| Publisher | University of Hamburg |
| Publication date | 2019 |
| Pages | 38-42 |
| Publication status | Published - 2019 |
| Event | Workshop on Configuration 2019 (ConfWS’19) - Hamburg, Germany Duration: 19 Sept 2019 → 20 Sept 2019 |
Conference
| Conference | Workshop on Configuration 2019 (ConfWS’19) |
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| Country/Territory | Germany |
| City | Hamburg |
| Period | 19/09/2019 → 20/09/2019 |
| Series | CEUR Workshop Proceedings |
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| ISSN | 1613-0073 |