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Optimal inventory policies for short life cycle successive generations’ technology products
Journal of Management Analytics ( IF 3.6 ) Pub Date : 2021-03-12 , DOI: 10.1080/23270012.2021.1881922
Gaurav Nagpal 1 , Udayan Chanda 1
Affiliation  

In this paper, a new Economic Order Quantity (EOQ) model for a successive generation of technology products has been discussed. The classical EOQ model is based on the assumption that the demand rate is constant. Hence it cannot be used for technology products where competition-substitution among products is a usual phenomenon. To address this problem, the EOQ model proposed in this article is considered a demand model for a technology product that follows the innovation-diffusion process. A numerical example has been illustrated and a comprehensive sensitivity analysis is conducted to understand the path of the optimal planning horizon and optimal costs under varied innovation and imitation effect. The sensitivity analysis of the introduction timing of the second generation has been performed to know the applicability of the model in actual circumstances. The behavior of the model has been discussed in detail in the numerical illustration section.



中文翻译:

短生命周期连续世代科技产品的最优库存策略

本文讨论了一种新的经济订货量 (EOQ) 模型,适用于连续一代的技术产品。经典的 EOQ 模型基于需求率恒定的假设。因此,它不能用于产品之间竞争替代是普遍现象的技术产品。为了解决这个问题,本文提出的EOQ模型被认为是遵循创新扩散过程的技术产品的需求模型。举例说明了一个数值例子,并进行了综合敏感性分析,以了解在不同的创新和模仿效应下的最优规划视野和最优成本的路径。进行了第二代引入时机的敏感性分析,以了解模型在实际情况下的适用性。模型的行为已在数值说明部分详细讨论。

更新日期:2021-03-12
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