A web-based multi-optimisation approach for convergent product networks using the Steiner tree
by Reza Hassanzadeh; Iraj Mahdavi; Nezam Mahdavi-Amiri
International Journal of Services and Operations Management (IJSOM), Vol. 17, No. 2, 2014

Abstract: We propose a methodology to determine value by adding functionalities for convergent products. A collection of base functions and sub-functions configure the nodes of a web-based (digital) network representing functionalities. Each arc in the network is to be assigned as the link between two nodes. The aim is to find an optimal tree of functionalities in the network adding value to the product in the web environment. First, a purification process is performed in the product network to assign the links among bases and sub-functions. Then, numerical values as benefits and costs are determined for arcs and nodes respectively, using a mathematical approach. Finally, the Steiner tree methodology is adapted to a bi-objective model for the network to find the optimal tree determining the value adding sub-functions to bases in a convergent product. To fulfil the bi-objective model a ε-constraint methodology is used and the parto optimal solutions are evaluated. An example is worked out to illustrate the applicability of the proposed approach.

Online publication date: Tue, 17-Jun-2014

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