The Research for Flexible Product Mix Based on Real Option

This paper studies the product family on the base of product platform and producing the product family for large-scale production after the modular. In order to meet customer diverse demand and respond to the market's growth, this article build model of the product mixbased on the flexible product platform, using binary real option pricing method and 0-1 mathematical programming. The goal of this model is to find the best production strategy for product mix, which means the largest value of the options. Finally, give a case and find the solution of the optimal production strategy for product mix.