| Product mix decision is one of the most important decisions of a company. At present, most companies make decisions by the traditional cost method, and make the production priority of products through margin. With the development of science and technology, there has been a great change in the structure of the modern company, following with the direct cost declines and the indirect cost increases, especially the controllable indirect cost which is difficult to attribute to product increases. Thus the traditional cost method has been not applicable for the contemporary companies.Regarding a company as a system, TOC puts forward the Five Focusing Steps(FFS) and constructs a performance measurement system which takes throughput, investment and operational expense as the core, through focusing on the bottleneck resource which limits the whole throughput of the system. Therefore TOC not only solves the problem of the cost apportionment, but also provides all-around decision methods for the company. According to the number of the bottlenecks, the product mix problem is divided into single bottleneck product mix problem and multiple-bottleneck product mix problem. Aiming at single bottleneck product mix problem, this thesis presents the detail steps of the traditional TOC algorithm and gives an example, then discusses the cases of new products joining into the production. It is proposed a TOC heuristic algorithm in allusion to multiple-bottleneck product mix problem in this thesis. On the base of the initial feasible mix and with the consideration of the effect of all the bottlenecks, the TOC heuristc algorithm adjusts the amount of relevant products dynamically. It is shown that the results of the TOC heuristic algorithm are the same as the results of integral programming in the example. Furthermore, this thesis discusses dynamic pricing, products optimization, capacity programming based on the TOC product mix decision, which enriches the content of TOC product mix decision. |
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