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 language | English |
---|---|
Pages | 75-84 |
Number of pages | 10 |
DOIs | |
State | Published - 2014 |
Event | 16th International Dependency and Structure Modelling Conference, DSM 2014 - Paris, France Duration: 2 Jul 2014 → 4 Jul 2014 |
Conference
Conference | 16th International Dependency and Structure Modelling Conference, DSM 2014 |
---|---|
Country/Territory | France |
City | Paris |
Period | 2/07/14 → 4/07/14 |
Keywords
- Design rules
- Modularity
- Product architecture
- Product development
- Resource allocation