Concurrent optimizing configuration, price, warranty, and supply policy in configurable product family (CPF)

Abstract

Considering the integrative design, production, and marketing policies for a configurable product family (CPF) (such as automobile, computer, cell phone) in decision making in a simultaneous manner is essential. This paper aims to provide a profit-maximisation model for integrating policies for CPFs by optimising the main variables of product configuration selection, components’ supply policy, price, and modules warranty lengths for each product. The existing models are not concerned with all these variables. Discrete decisions should be made on selecting the appropriate components for different modules and whether to buy or make them; simultaneously, the price and warranty are determined. The proposed model is a mixed-integer nonlinear problem and solved through a Genetic Algorithm (GA) and an adapted Particle Swarm Optimization (PSO) algorithm. The results of applying GA and PSO for different numerical cases and sensitivity analyses indicate the model's abilities and the algorithms’ effectiveness. The findings can introduce new insights for managers and engineers and a focal point for researchers to run new and extensive studies in this field.