Profit-Optimizing Product Line Design, Selection and Pricing with Manufacturing Cost Considerations : A Survey

Much of the literature on product line design or product line selection focuses on revenues or market share maximization, but in many cases, the true objective is to maximize profit. In this paper, we survey the literature on models that address decisions regarding the conceptual design of products to be offered, or the selection of products among a large set of potential products, and in some cases, the prices of the offered products. We focus on the combined effects of multiple product offerings on both revenue and manufacturing costs and emphasize models that would accommodate variable manufacturing costs, the cost of manufacturing facilities, and/or engineering design costs of some form. The paper concludes with promising directions for future research