Modular Machine Tools: Bundling and Pricing Strategies under Demand Uncertainty

Summary.- Zusammenfassung.- I The Industry Problem.- 1 International Machine Tool Industry Analysis.- 2 Literature Review.- II The Model.- 3 The Module Design Problem.- 4 The Module Selection Problem.- 5 The Bundle Pricing Problem.- 6 Bundle Pricing Under Demand Uncertainty.- 7 The Customized Machine Tool Model.- III Alternative Formulations, Solution Methods and Results.- 8 Alternative Model Formulations.- 9 Solution Methods.- 10 Implementation and Computational Results.- IV Model Applications.- 11 Application Case Studies.- V Conclusions and Contributions.- Appendices.- A References.- B The Customized Machine Tool Program.- C The CMT Case Study Program.- D The CMT Case Study Solution.

Dr. Nils Tönshoff promovierte am Lehrstuhl von Professor Dr. Arnd Huchzermeier der Wissenschaftlichen Hochschule für Unternehmensführung in Vallendar. Er arbeitet heute als Projektkoordinator bei der BMW AG in München.

German machine tool manufacturers are increasingly confronted with difficulties in gaining competitive advantages by offering highly customized products. But necessary cost reductions can be obtained by employing a modularization strategy that explicitly considers customers' requirements already in the module design stage. Nils Tönshoff presents a new framework of the machine tool building and selling process that accounts for optimized cross-functional decision making in module design, machine tool manufacturing and product marketing. The tradeoff between customization and standardization is balanced by a bundle pricing strategy based on a modular product structure. The analytic tool developed by the author has been validated by a major German machine tool manufacturer.