Abstract: The production of personalized products with different attributes for the same kind of products ordered by multiple customers is considered. The issue addressed in this paper is how a firm optimizes its attribute configuration to satisfy the personalized demands under production capacity and cost constraints. Based on the deviation between customers’ demands and attribute outputs, a pricing factor function is established. Then, two programming models for configuration optimization are established to minimize total weighted deviation and maximize total profit, respectively. Numerical example is used to compare these two models. Results show that, under the same pricing rules, these two models can obtain similar solutions in meeting customers’ demands.

Key words: personalized demands, product attributes, attribute configuration, pricing factors