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Product family design and platform-based product development has received much attention over the last decade. This paper provides a comprehensive review of the state-of-the-art research in this field. A decision framework is introduced to reveal a holistic view of product family design and platform-based product development, encompassing both front-end and back-end issues. The review is organized according to various topics in relation to product families, including fundamental issues and definitions, product portfolio and product family positioning, platform-based product family design, manufacturing and production, as well as supply chain management. Major challenges and future research directions are also discussed.