In the field of product modular design, it is desirable to have a methodology leading to a dynamic product design responding to the changing market. In this article, an option-pricing method is proposed for the module introduction decision making. At each stage of the module introduction processes, the decision maker can decide to add, reject and merge modules to form different kinds of configurations. The proposed approach is demonstrated through the design of mobile phones. The results indicate that the proposed decision models can effectively respond to the customer demands and bring greater net present value for companies.
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