Decision-Making Techniques of the Consumer Behaviour Optimisation of the Product Own Price

Ivan Marc,Tomaž Berlec,Janez Kušar

doi:10.3390/app12042176

Abstract

Giving an offer to a consumer and knowing the average cost of the product (ACP) for the product along the entire production process, depending on the size of the order, can be a very important indicator which also has an impact on the lean production process. This paper presents a mathematical model to analyze the impact of customer changes (changes in the product type, quantity and/or quality) on the lean production process, and thus on the average production price (ACP). Any change in the process could mean a deviation from the lean process, which means an increase of the ACP for the company, which is the main goal of Industry 4.0. The measurements can be performed on all of the operations of the production process in a company, or only the most critical operations in terms of waste can be selected. The model was tested on an example of a product from a Slovenian company. The average cost of the product in the selected work operation turned out to be 71% higher than the optimal case due to an excessive stock of semi-finished products. Excessive stock can lead to a situation in which the product’s own price even exceeds the selling price of the product, which of course leads to the loss of the company.

Highlights

In order to determine how lean a production process is, or to monitor the effectiveness of the introduction of changes to achieve a leaner production process, it is desirable to monitor three important parameters, namely consumer purchasing behaviour or customer demand, the average cost of the product along the entire logistics chain of the production process, and the movement of stocks along the entire production process.Consumer behaviour is very important for the sizing of the production process and the cost aspect of an investment
We focused on the work operation of assembling the basic hinge (j)
We focused on the work operation of assembling (i) the basic hinge (j) (Figure 8), which is a critical operation in the production process of said product

Summary

Introduction

In order to determine how lean a production process is, or to monitor the effectiveness of the introduction of changes to achieve a leaner production process, it is desirable to monitor three important parameters, namely consumer purchasing behaviour or customer demand, the average cost of the product along the entire logistics chain of the production process, and the movement of stocks along the entire production process.Consumer behaviour (requirements for quantity and quality) is very important for the sizing of the production process and the cost aspect of an investment. In order to determine how lean a production process is, or to monitor the effectiveness of the introduction of changes to achieve a leaner production process, it is desirable to monitor three important parameters, namely consumer purchasing behaviour or customer demand, the average cost of the product along the entire logistics chain of the production process, and the movement of stocks along the entire production process. The average cost of the product is important, as it allows us to monitor the efficiency and profitability of the production process in the introduction of principles and methodologies aimed at making the production process as lean as possible. The production process is monitored by following the pull strategy principle, which means starting by the consumer, and continuing to the warehouse of finished products and further along the entire logistics chain to the suppliers

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Conclusion