Authors: Reza Hassanzadeh; Iraj Mahdavi; Nezam Mahdavi-Amiri
Addresses: Department of Industrial Engineering, Mazandaran University of Science and Technology, Tabarsi Street, Babol, Iran ' Department of Industrial Engineering, Mazandaran University of Science and Technology, Tabarsi Street, Babol, Iran ' Faculty of Mathematical Sciences, Sharif University of Technology, Azadi Street, Tehran, Iran
Abstract: In the proposed work, by applying the Steiner tree, a bi-objective mathematical model is developed to consider promotion of convergent products to satisfy two objectives of cost and benefit. The results are some new products with more utility for both the buyer and the producer. The methodology proposed to determine value 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. A heuristic zero/one programming is developed to provide a solution framework. 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. An example is worked out to illustrate the applicability of the proposed approach.
Keywords: convergent products; web-based networks; digital networks; bi-objective programming; Steiner tree; 0-1 programming; mathematical modelling; product networks; internet; value added.
International Journal of Advanced Operations Management, 2015 Vol.7 No.1, pp.63 - 84
Available online: 16 Mar 2015 *Full-text access for editors Access for subscribers Purchase this article Comment on this article