Assessing comparative production efficiencies for product line management
Document Type
Article
Department or Administrative Unit
Finance and Supply Chain Management
Publication Date
2-26-2015
Abstract
Product line management involves product expansion or elimination depending on various factors, for example, production processes and demands in the market. This study focuses on measuring product performance for a firm’s product line management, using parametric and non-parametric approaches. First, we choose variables related to the production and demand of products and assess the comparative performance of product groups and individual products using data envelopment analysis (DEA). Second, we attempt to detect possible performance differences among the product groups using one-way analysis of variance. Third, we identify the sources of inefficiency using appropriate DEA scores and offer some managerial insights. Last, we try to confirm the determinants of product performance using Tobit regression analysis. The major contribution of this study is the use of a novel approach for product line management by measuring the performance of product groups and individual products using pertinent variables. The approach used in this study is applicable to various manufacturing and service industries. The limitations of this study are the number of product groups selected and examination of performance using cross-sectional data.
Recommended Citation
Joo, S.-J., & Choi, H.-C. P. (2015). Assessing comparative production efficiencies for product line management. International Journal of Production Research, 53(17), 5241–5250. https://doi.org/10.1080/00207543.2015.1015749
Journal
International Journal of Production Research
Rights
© 2015 Taylor & Francis
Comments
This article was originally published in International Journal of Production Research. The full-text article from the publisher can be found here.
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