Identification of the cost-benefit-optimal product configuration

Abstract Manufacturing companies face the challenge of providing customized products at competitive prices, while the market is increasingly fragmented into small niches. Considering the benefits and expenses of product variants during the product configuration process is a significant challenge. A holistic approach that considers the costs related to a new variant and the existing variants in the company as well as accompanying strategic and customer-specific benefits is missing. Therefore, this paper presents a methodology for the determination of a “cost-benefit-optimal product configuration”.