Abstract
The objective of this paper is to investigate the degree of the customer involvement in final assembly (CIFA) in establishing a do-it-yourself (DIY) product design in order to achieve cost minimization of the incumbent firm in a competitive environment. Such a decision-making problem is addressed with consideration of the competitors and the learning curve effect within the three hypothetical stages of a product life cycle (PLC). Accordingly, a Bayesian decision model that incorporates expert opinions with available information is proposed to determine the optimal CIFA ratio for a DIY product. Finally, a numerical example is used to illustrate the effectiveness of the proposed model, and sensitivity analyses are also performed in light of the numerical example.
Original language | English |
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Pages (from-to) | 19-27 |
Number of pages | 9 |
Journal | Computers and Industrial Engineering |
Volume | 56 |
Issue number | 1 |
DOIs | |
Publication status | Published - 2009 Feb |
All Science Journal Classification (ASJC) codes
- Computer Science(all)
- Engineering(all)