Investment decisions in modular product development

    Research output: Contribution to conferencePaperpeer-review

    Abstract

    Developing new products is critical to firms' success and is the key for sustaining competitive advantage. Firms engaging in product development (PD) face the important problem of allocating scarce development resources to a multitude of opportunities. In this paper, we propose a mathematical formulation to optimize product development (PD) investment decisions. The model maximizes the performance of a product under development based on its product architecture and the firm's resource constraints. The analysis of the model shows that the architecture of a product plays an essential role in affecting the optimal resource allocation to various product modules.

    Original languageEnglish
    Pages75-84
    Number of pages10
    DOIs
    StatePublished - 2014
    Event16th International Dependency and Structure Modelling Conference, DSM 2014 - Paris, France
    Duration: 2 Jul 20144 Jul 2014

    Conference

    Conference16th International Dependency and Structure Modelling Conference, DSM 2014
    Country/TerritoryFrance
    CityParis
    Period2/07/144/07/14

    Keywords

    • Design rules
    • Modularity
    • Product architecture
    • Product development
    • Resource allocation

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