An Approach to Decision-Based Design With Discrete Choice Analysis for Demand Modeling

TLDR

The paper argues for a single‑criterion Decision‑Based Design, extending Hazelrigg’s framework by using producer economic benefit as the sole criterion for alternative selection. It introduces Discrete Choice Analysis to build a product demand model that informs the economic benefit criterion, demonstrates the method on an academic universal motor design problem, and focuses on illustrating the approach rather than detailed design outcomes. When applied correctly, the enhanced DBD framework can unambiguously select the preferred alternative in a rigorous manner. The authors note open research issues for implementing the DBD approach.

Abstract

In this paper, we present the importance of using a single criterion approach to Decision-Based Design (DBD) by examining the limitations of multicriteria approaches. We propose in this paper an approach to DBD as an enhancement to Hazelrigg’s DBD framework that utilizes the economic benefit to the producer as the single criterion in alternative selection. The technique of Discrete Choice Analysis (DCA) is introduced for constructing a product demand model, which is crucial for the evaluation of both profit and production cost. An academic universal motor design problem illustrates the proposed DBD approach. It appears that DBD, when applied correctly, is capable of unambiguously selecting the preferred alternative in a rigorous manner. Open research issues related to implementing the DBD approach are raised. The focus of our study is on demonstrating the approach rather than the design results per se.