A multiobjective approach for optimal design of product line

A one-step multiobjective optimization model for product line design based on the conditional multi nominal logit choice rule is established. The two objectives of the proposed model are maximizing total the product demand in a multi-segment market and minimizing the total develop cost of a product line. The influence of the number of selected product profiles on the product development cost is considered in the model by introducing a cost reduction coefficient. Moreover, a curve fitting method is introduced into the part-worth utility model so that the optimization model can be applied to products with level-based attributes and attributes which have continuous values. A multiobjective genetic algorithm is developed to solve the proposed model and a set of non-dominated solutions can de achieved. With these non-dominated solutions, a firm manager can select a preferred solution interactively. An example of the optimal design of product line of digital cameras is used to illustrate the proposed model and algorithm.