Abstract

Under the assumption that customers divided into different independent segments have heterogeneous preference on products of a product family and sensitivities to their prices, this paper proposes an ATO (Assemble-to-Order) manufacturer production and pricing model to study how the ATO manufacturer meets the heterogeneous demands of consumers from different segments by product selection and pricing. It is found that a product family ATO manufacturer would better always keep more than one type of product are available in the market to better meet customers' heterogeneous demands and provide only one flagship product to every customer segment.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.