Paper
Inventory Control of New Products with Price Change Anticipation under Influence of Innovation Diffusion Process
- Authors:
- Chandra K Jaggi; Alok Kumar; K. K. Aggarwal
- Abstract
- The new product diffusion models such as Bass model and their revised and extended forms have played a major role in marketing literature because those models have been widely used for forecasting dynamic demand growth in retail service, industrial technology, consumer durable goods, etc. However, the demand pattern of these models has not been recognized by the models developed in the inventory field. The approach of this paper is to develop an inventory model in which the demand of the product follows extended Bass diffusion model by incorporating price in a multiplicative way. The model is illustrated with a numerical example and a comprehensive sensitivity analysis of the optimal solution with respect to different parameters was performed to make the model more effective.
- Keywords
- Innovation Diffusion; EOQ; Potential Market Size; Price Dependent Demand
- StartPage
- 61
- EndPage
- 74
- Doi