The Optimal Placement of the Manufacture Lines for New Products: An Econometric Approach

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In most cases, the process of the new product takes places inside the companies in the production lines it disposes of, together with the production flow of the already existing products from the market. This happens especially in the situation of new products that represent improvements of the already existing products (the shampoo with a greater washing capacity, the hamburger with a double quantity of meat, double filtered cigarettes).
There are also situations when the make of the new products need a new placement, different from that owned by the company. This is valid in at least two situations:
- The society decides to diversify the products’ catalogue by realizing new products, completely different from that already exist;
- The society does not enrich its products’ catalogue, but it decided to penetrate new sale markets with its products. In this case, the products of the company represent new products for that market.
By placement, we understand the place, terrain where one can realize a technological line (in this case to make new products). The connection between the placement and the subsequent production activity is biunique. On one hand, the production activity and the used technology modify (sometimes fundamentally) the natural background, and on the other hand the placement offers more or less value to the subsequent production activity.
The choice of the placement strongly contributes to the economical efficacy of the making line and to the success or failure of the new product on the market. For example, the placement far from the raw materials providers means supplementary exploitation expenses; the placement of a commercial center of a certain profile in an area where the population is not interested to consume those products will determine a decrease of the sales volume.


Keywords: Optimal Placement, New Product Development, Economic Efficiency, Econometric Methods, Investment
Stream: Social Sustainability
Presentation Type: Virtual Presentation in English
Paper: Optimal Placement of the Manufacture Lines for New Products, The,


Claudiu Cicea

Senior Lecturer PhD, Economic Efficiency Department, Academy of Economic Studies from Bucharest
Bucharest, Romania

I am a senior lecturer at the Academy of Economic Studies from Bucharest, the most important university in Romania, in the economic area. A) Key qualifications: Economic and Social Efficiency, Investment Evaluation, Synergetic Economic Systems, New Products Development, Feasibility Studies, Investment Resources Optimization. B) Research scientific projects : “Micro and macrosystemic efficiency in Romanian higher education activity” Project supervisor: Claudiu CICEA PhD.; “Investments in knowledge’s management systems”, Project supervisor: Florica LUBAN PhD.; “Synergy of Technical and Economic Systems”, Project supervisor: Ion VASILESCU PhD.; “Promotion Management of the Economic Higher Education in Romania, in the context of Knowledge’s Society”, Project supervisor: Ion VASILESCU PhD. C) International Experience : Research stage in Efficiency Evaluation – September 2006 University of Southern Denmark from Odense, Denmark; Research stage in Efficiency Evaluation – September 2002, Economic University of Geneva, Swiss; Research stage in Synergetic Economic Systems – May 2002, University Carlos III, Madrid, Spain; Research stage in Simulated Firms – August 2001, Centro di Formazione Professionale “CITTA DEL RAGAZZO”, Instituto Don Calabria, Ferrara, Italy. D) Publications : Over 20 articles, presented at national and international symposiums, about economic and social efficiency, investments, synergetic systems etc.; 12 books (single author or collaboration) dealing with efficiency in the economic area, case studies etc.

Ref: S08P0005