2018 INFORMS Annual Meeting, Arizona, United States Of America, 4 - 07 November 2018, pp.408
This study addresses the problem of multi-period mix of product-lines under a product family, which incorporates launching decisions of new products, capacity planning decisions and product interdependencies. The problem is modeled as a two-stage stochastic program in which price, demand, production cost and cannibalisation effect of new products are characterized as uncertain parameters. The solution approach employs the Monte Carlo bounding technique and Lshaped method, which is tested on real-like cases considering VSS and EVPI performance measures. The data collected through two experimental studies is analysed using ANOVA and Random Forest methodology.