scholarly journals Pricing to the Scenario: Price-Setting Newsvendor Models for Innovative Products

Mathematics ◽  
2019 ◽  
Vol 7 (9) ◽  
pp. 814 ◽  
Author(s):  
Xiuyan Ma
Keyword(s):  
Lead Time ◽  
Price Setting ◽  
Innovative Product ◽  
Newsvendor Model ◽  
Sale Price ◽  
Optimal Production ◽  
Monopoly Market ◽  
Innovative Products ◽  
Goods Market ◽  
Production Quantity

In this paper, we consider a manufacturer who produces and sells a kind of innovative product in the monopoly market environment. Because the life cycle of an innovative product is usually shorter than its procurement lead time, one unique demand quantity (scenario) will occur in the selling season; thus, there is only one chance for the manufacturer to determine both optimal production quantity and optimal sale price. Considering this one-time feature of such a decision problem, a price-setting newsvendor model for innovative products is proposed. Different to the existing price-setting newsvendor models, the proposed models determine the optimal production quantity and sale price based on some specific state (scenario) which is most applicable for the manufacturer. The theoretical analysis provides managerial insights into the manufacturers’ behaviors in a monopoly market of an innovative product, and several phenomena in the luxury goods market are well explained.

scholarly journals Pricing to the Scenario: Price-Setting Newsvendor Models for Innovative Products

2019 ◽  
Author(s):  
Xiuyan Ma
Keyword(s):  
Lead Time ◽  
Price Setting ◽  
Innovative Product ◽  
Newsvendor Model ◽  
Sale Price ◽  
Optimal Production ◽  
Monopoly Market ◽  
Innovative Products ◽  
Goods Market ◽  
Production Quantity

In this paper, we consider a manufacturer who produces and sells a kind of innovative product in the monopoly market environment. Because the life cycle of innovative product is usually shorter than its procurement lead time, one unique demand quantity (scenario) will occur in the selling season, thus there is only one chance for the manufacturer to determine both optimal production quantity and optimal sale price. Considering this one-time feature of such a decision problem, a price-setting newsvendor model for innovative products is proposed. Different to the existing price-setting newsvendor models, the proposed models determine the optimal production quantity and sale price based on some specific state (scenario) which is most applicable for the manufacturer. The theoretical analysis provides managerial insights into the manufacturers’ behaviors in a monopoly market of an innovative product and several phenomena in the luxury goods market are well explained.

Strategic determinants for introduction of innovation to the market

2019 ◽  
pp. 63-66
Author(s):  
Lyudmyla Petrenko
Keyword(s):  
Time Management ◽  
Strategic Choice ◽  
External Factors ◽  
Innovative Product ◽  
Scientific Publications ◽  
Internal Factors ◽  
Radical Innovations ◽  
Management Actions ◽  
Innovative Products ◽  
The Moment

All innovative products implemented by enterprises can be classified into two categories: radical innovation or improvements. If the first category is almost exclusively the result of breakthrough scientific research, then the second is a consequence of management actions to further improve previous innovative products. Improvements, in contrast to radical innovations, are a relatively less studied direction. In most cases, the moment the radical innovations enter the market is difficult to predict. However, the introduction of improvements to the market is determined by management. At the same time, management, making a decision on introducing an innovative product to the market, focuses on internal and external factors. Internal factors are organizational readiness to introduce an innovative product, and external factors are market necessity. The latter implies, if possible, a reaction to the actions of competitors, who also introduce innovations. The problematic question remains relevant: how do various external and internal factors determine the choice of the moment the innovation is brought to the market. What has a decisive influence on such a strategic choice? The purpose of this study was to investigate how competing and complementary technological events in the environment affect an enterprise’s launch of innovative products on the market. The study was carried out based on the analysis of scientific publications on the economics of innovation and publications on competitive rivalry. The main conclusion: strategies for improvements, as a rule, become less focused on the internal determinants of bringing innovations to the market as market concentration increases, and at the same time, they are increasingly reacting both to competitors’ innovations and innovations in additional technologies. Thus competitive pressure in the industry is an important determinant of the strategic choice to bring innovation to the market.

Dynamic Sale Price Setting for Load Serving Entity’s Profit Maximization

2020 ◽  
Author(s):  
Sandeep Chawda ◽  
Parul Mathuria ◽  
Rohit Bhakar ◽  
Sreenu Sreekumar
Keyword(s):  
Profit Maximization ◽  
Price Setting ◽  
Sale Price

scholarly journals Pengembangan Industri Kreatif di Panti Asuhan Miftahunnajah Banguntapan Bantul Yogyakarta Berupa Pendampingan Pembuatan Produk Kreatif dari Bahan Limbah Konveksi (Kain Perca)

2018 ◽  
Vol 1 (1) ◽  
pp. 33
Author(s):  
Yasrin Zabidi
Keyword(s):  
Community Service ◽  
Creative Industries ◽  
Innovative Product ◽  
Community Group ◽  
Surrounding Environment ◽  
Innovative Products ◽  
Service Activity ◽  
Good Potential ◽  
Creative Products ◽  
Creativity And Innovation

Miftahunnajah Orphanage is a community group that organizes pesantren education for orphans. For that purpose, the orphanage management needs a lot of operational expenses in the organization of education and to fulfill the needs of the students santri. So far, the funds used for operations are mostly dependent on donors from donors. The santri in this orphanage have good potential to be developed in order to be more economically independent and not only rely on donor donations or existing funders. While in the neighborhood around the orphanage many resources that can be raised to be developed in the form of creative industries. One of the existing resources is the existence of scrap wastes from small convection industry in Yogyakarta. Creativity and innovation santri-santri Miftahunnajah orphanage needs to be developed in order to capture the opportunities that exist in the vicinity. The solution to solve the problem of lack of creativity and innovation of the santri at Miftahunnajah Orphanage is to provide guidance for business counseling. Therefore in the activities of Community Service T.A. 2017/2018, the proposer conducted advisory activities to nurture and guide the Orphanage Miftahunnajah in making creative products and innovations from waste patchwork materials that exist in the surrounding environment to be a creative product and can be marketed so as to support the orphanage economy and become the Orphanage economically independent. The steps undertaken in the Community Service activities are as follows: 1) Conducting a survey to find out the condition of Orphanage Miftahunnajah in Wonocatur Banguntapan area, 2) Conducting data of creative industries appropriate for guidance / mentoring, 3) Conducting business assistance in the form of guidance of creating creative and innovative products from waste materials that can be developed at Miftahunnajah Wonocatur Banguntapan orphanage. The result of this community service activity is children at Miftahunnajah Orphanage can make creative and innovative product from waste material of patchwork.

scholarly journals The Single-Vendor Multibuyer Integrated Production-Delivery Model with Production Capacity under Stochastic Lead Time Demand

2020 ◽  
Vol 2020 ◽  
pp. 1-11
Author(s):  
Xuefang Sun
Keyword(s):  
Genetic Algorithm ◽  
Lead Time ◽  
Production Capacity ◽  
Solution Procedure ◽  
Managerial Implication ◽  
Optimal Production ◽  
Integrated Production ◽  
Delivery Model ◽  
Multiple Buyers ◽  
Exhaustive Method

In this paper, we consider an integrated production-delivery model in which a vendor supplies the same product to multiple buyers. Unlike existing study, in this proposed model, we assume that the sum of all buyers’ demand rates is larger than the vendor’s production rate under normal work, but less than that under overtime. All buyers are independent of each other. For each buyer, the lead time demand is stochastic and the shortage during lead time is permitted. The main objective of this model is to determine the optimal production and delivery policies and the optimal overtime strategy, which minimize the joint expected annual cost of the system. Based on the genetic algorithm, we develop a solution procedure to find the optimal production, delivery, and overtime decision of this model. Computational experiments show the error rate between the objective values obtained by the proposed solution procedure and the solutions solved by the exhaustive method. The results indicate that the proposed mixed genetic algorithm is more effective and adoptable in comparison with the exhaustive method as it can be able to calculate the optimal solutions for at least 96% for the instances. Ultimately, an adequate numerical example is given to show the detailed process of the solution procedure, and sensitivity analysis of main parameters with managerial implication is discussed.

The effect of demand uncertainty in a price-setting newsvendor model

2010 ◽  
Vol 207 (2) ◽  
pp. 946-957 ◽  
Author(s):  
Minghui Xu ◽  
Youhua (Frank) Chen ◽  
Xiaolin Xu
Keyword(s):  
Demand Uncertainty ◽  
Price Setting ◽  
Newsvendor Model

Interrelationships and consequential effects among technological innovation, service consistency, customer satisfaction and loyalty in banking

2017 ◽  
Vol 6 (3) ◽  
pp. 51
Author(s):  
Asare Yaw Obeng ◽  
Mkhize L Peter
Keyword(s):  
Customer Satisfaction ◽  
Technological Innovation ◽  
Customer Loyalty ◽  
Value Added ◽  
Innovative Product ◽  
Critical Factors ◽  
Quality Product ◽  
Innovative Products ◽  
Customer Satisfaction And Loyalty

<p>The key to long-term success in banking is consistent improvement and delivering of quality product and or value-added service that conform to the expectations of customers. IT-innovative products/services and processes (technological innovation) facilitate these key elements of customer satisfaction and critical factors for retaining valued customers. The objective of this paper is to explore the effects of technological innovation on service consistency and the consequential effects on customer satisfaction and loyalty covering seven universal banks in Ghana. The results of the empirically tested model reveal new/improved product/process functionalities, service consistency and innovative product/process satisfaction contribute significantly to customer loyalty (<em>p &lt; 0.001</em>). Service consistency has a marginal higher impact (<em>β </em>= .373) on customer loyalty than the others. Product/process quality contributes significantly (with <em>β</em> ranging from .345 to .742 and <em>p &lt; 0.001</em>) to each of the above three antecedents than all other items.</p>

The effect of yield rate in a general price‐setting newsvendor model with a yield‐dependent secondary market

2017 ◽  
Vol 26 (6) ◽  
pp. 2337-2361 ◽  
Author(s):  
Li Yu ◽  
Jun Pei ◽  
Xinbao Liu ◽  
Wenjuan Fan ◽  
Panos M. Pardalos
Keyword(s):  
Secondary Market ◽  
Price Setting ◽  
Newsvendor Model ◽  
Yield Rate

Decision Models of Supply Chain Under Asymmetric Information with Demand Disruption

2010 ◽  
Vol 143-144 ◽  
pp. 773-781
Author(s):  
Xin Rong Jiang ◽  
Yong Chao Li
Keyword(s):  
Supply Chain ◽  
Asymmetric Information ◽  
Stackelberg Game ◽  
Wholesale Price ◽  
Retail Price ◽  
Expected Profit ◽  
Decision Models ◽  
Market Demand ◽  
Optimal Production ◽  
Production Quantity

This paper studied the influence of asymmetric information and demand disruption on the decision of the supply chain. We analyzed the supply chain decision models based on a Stackelberg game under normal circumstances and demand disruption situation. The conclusion indicates when the market demand is disrupted, the optimal wholesale price, the retail price, the supplier’s expected profit and the supply chain system’s expected profit change in the same direction as the demand disruption, while the optimal production quantity and the retailer’s profit both have certain robustness under disruption. Finally we gave a numerical example to illustrate our analysis.

Sign in / Sign up

Export Citation Format

Share Document