On the optimal frequency of multiple generation product introductions
| Autor: | Ralf W. Seifert, Shuangqing Liao |
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| Předmět: |
Information Systems and Management
General Computer Science business.industry Time horizon Management Science and Operations Research Industrial and Manufacturing Engineering Profit (economics) Microeconomics OR in research and development Time-pacing Modeling and Simulation New product development Economics Revenue Frequency of new product introduction Installed base Marketing business |
| Popis: | This paper considers a firm that introduces multiple generations of a product to the market at regular intervals. We assume that the firm has only a single production generation in the market at any time. To maximize the total profit within a given planning horizon, the firm needs to decide the optimal frequency to introduce new product generations, taking into account the trade-off between sales revenues and product development costs. We model the sales quantity of each generation as a function of the technical decay and installed base effects. We analytically examine the optimal frequency for introducing new product generations as a function of these parameters. (C) 2015 Elsevier B.V. All rights reserved. |
| Databáze: | OpenAIRE |
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