An Economic Order Quantity Model for New Products When Demand Follows Dynamic Innovation Process

2014 ◽  
pp. 297-319
Author(s):  
K. K. Aggarwal ◽  
Alok Kumar
Keyword(s):  
Demand Function ◽  
New Products ◽  
Optimal Solution ◽  
Innovation Process ◽  
Life Cycles ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Market Size ◽  
Order Quantity ◽  
Potential Market

In this era of globalization and constant innovation, the life cycles of products are diminishing, which tends to cause dynamic behaviour in the system, and because of this, there is a constant introduction of new products in the market. Therefore, while developing inventory models for new products, it becomes necessary to consider dynamic parameters associated with the demand function and responsible for making the system dynamic, which are essential for economic ordering policies for such products. In this chapter, an economic order quantity model is developed in which the demand is time-dependent and innovation-driven. The parameters such as coefficient of innovation and potential market size associated with the demand function are considered dynamic over time to match the real feature of the system. The model is illustrated with a numerical example, and a comprehensive sensitivity analysis of the optimal solution with respect to different parameters is performed to know the utility of the model.

An Inventory Model for New Product When Demand Follows Dynamic Innovation Process having Dynamic Potential Market Size

2012 ◽  
Vol 3 (4) ◽  
pp. 78-99 ◽  
Author(s):  
K. K. Aggarwal ◽  
Alok Kumar
Keyword(s):  
Demand Function ◽  
Dynamic Behaviour ◽  
New Products ◽  
Optimal Solution ◽  
Innovation Process ◽  
New Product ◽  
Life Cycles ◽  
Market Size ◽  
Potential Market ◽  
Dynamic Potential

In this era of globalization and constant innovation the life cycles of the products are diminishing which tends to dynamic behaviour of the system and because of this there is a constant introduction of new products in the market. Therefore, while developing inventory models for new products, it becomes necessary to consider dynamic parameters associated with the demand function and are responsible for making the system dynamic which are essential for economic ordering policies for such products. In this paper an economic order quantity model has been developed in which the demand is time dependent and innovation driven. The parameters such as coefficient of innovation and potential market size associated with the demand function have been considered as dynamic over time to match with the real feature of the system. The model is illustrated with a numerical example and a comprehensive sensitivity analysis of the optimal solution with respect to different parameters has been performed to know the utility of the model.

Economic Order Quantity Model with Innovation Diffusion Criterion under Influence of Price-Dependent Potential Market Size

2014 ◽  
Vol 11 (05) ◽  
pp. 1450028 ◽  
Author(s):  
K. K. Aggarwal ◽  
Alok Kumar
Keyword(s):  
Innovation Diffusion ◽  
Diffusion Theory ◽  
Optimal Solution ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Market Size ◽  
Order Quantity ◽  
Eoq Model ◽  
Potential Market ◽  
Replenishment Policy

In last few decades various models developed under inventory control section whether of probabilistic or deterministic nature did not consider the effect of marketing parameters. The marketing parameters especially associated with innovation diffusion theory make the inventory models more realistic. In this paper, an inventory model has been proposed based on the explicit assumptions of interaction of marketing parameters to the optimal inventory replenishment policy. A time-dependent innovation driven demand has been incorporated in the basic economic order quantity (EOQ) model to know the realistic features of the model. This model assumes that potential market size is dynamic over time and is dependent on the price of the product. The model is illustrated with a numerical example and to know the effectiveness of the model a sensitivity analysis of the optimal solution with respect to different parameters has been performed.

A Study on Patent Storage Problems of Cooperation between Small and Micro Businesses and Universities in the Triple Helix of University-Industry-Government Relations — Based on Economic Order Quantity Model

2013 ◽  
Vol 712-715 ◽  
pp. 3149-3152 ◽  
Author(s):  
Pei Yu Tang ◽  
Shi Bin Su
Keyword(s):  
Triple Helix ◽  
Optimal Solution ◽  
Research Direction ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Future Research ◽  
Order Quantity ◽  
Future Research Direction ◽  
Government Relations ◽  
University Industry

The paper uses Economic Order Quantity Model to analyze patent storage problems of cooperation between small and micro businesses and universities from the perspective of university-industry-government relations and reach a conclusion. The author obtains the optimal solution and points out the future research direction.

scholarly journals An Economic Order Quantity Model with Completely Backordering and Nondecreasing Demand under Two-Level Trade Credit

2014 ◽  
Vol 2014 ◽  
pp. 1-11 ◽  
Author(s):  
Zohreh Molamohamadi ◽  
Rahman Arshizadeh ◽  
Napsiah Ismail ◽  
Amir Azizi
Keyword(s):  
Demand Function ◽  
Trade Credit ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Competitive Industry ◽  
Decision Variables ◽  
Proposed Model ◽  
Special Cases ◽  
Optimal Ordering

In the traditional inventory system, it was implicitly assumed that the buyer pays to the seller as soon as he receives the items. In today’s competitive industry, however, the seller usually offers the buyer a delay period to settle the account of the goods. Not only the seller but also the buyer may apply trade credit as a strategic tool to stimulate his customers’ demands. This paper investigates the effects of the latter policy, two-level trade credit, on a retailer’s optimal ordering decisions within the economic order quantity framework and allowable shortages. Unlike most of the previous studies, the demand function of the customers is considered to increase with time. The objective of the retailer’s inventory model is to maximize the profit. The replenishment decisions optimally are obtained using genetic algorithm. Two special cases of the proposed model are discussed and the impacts of parameters on the decision variables are finally investigated. Numerical examples demonstrate the profitability of the developed two-level supply chain with backorder.

Sign in / Sign up

Export Citation Format

Share Document