Business leaders are concerned about the impacts of increasing
levels of product portfolio complexity since many sense that
complexity related costs such as order management, procurement, and
inventory threaten to undermine operational efficiencies and
consume profits. Even so, managers do not fully understand the
extent and breadth of the impacts of product portfolio complexity.
A more complete understanding of the operational effects of product
portfolio complexity is lacking partially because researchers have
not yet offered a robust theoretical perspective or studied it in a
focused controlled way; until now. Herein, measures of product
portfolio complexity are developed and related to sales volume and
supply chain costs. Revealed are nonlinearities which imply optimal
portfolio configurations and an approach to quantifying the most
profitable configurations. This book is of interest to the
corporate manager or consultant seeking a greater understanding of
the topic and wanting to maximize organizational performance. It
will also be of interest to the academic who wishes to understand
the theoretical underpinnings of product portfolio complexity.
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