Product decisions in practice

✍ Scribed by Jack W. Paul; Samuel C. Weaver

• Publisher: Elsevier Science
• Year: 2002
• Tongue: English
• Weight: 901 KB
• Volume: 19
• Category: Article
• ISSN: 0882-6110
• DOI: 10.1016/s0882-6110(02)19012-2

✦ Synopsis

This study provides insight as to how nine diversified companies make decisions on product additions/abandonments and pricing . We address the following: (1) identification of relevant costs and revenues, (2) processes used, and (3) the impact on support costs . We also document ancillary issues, shortcomings, and effective practices . Despite evidence of noteworthy practices, several companies should improve their decision processes and procedures . Since respondents indicated that non-manufacturing costs react more slowly to volume changes than do manufacturing costs, the companies should consider monitoring resources to assure they are available when needed or eliminated when activity is reduced .