One of the major concerns for the technology market is the demand volatility andits impact on inventory policies. Demand volatility in the technology sector mayarise due to many factors namely customer choices, compet...One of the major concerns for the technology market is the demand volatility andits impact on inventory policies. Demand volatility in the technology sector mayarise due to many factors namely customer choices, competition, growingmarket size, and so on. Often companies use rented warehouses to absorb anyfluctuations in demand. Unfortunately, warehouse and inventory researchesignore the phenomenon of growing market size to formulate policy decisions. Inthis paper, we proposed a two-warehouse inventory model with deterioration fortechnology products with linearly increasing market size where demand followsinnovation diffusion criterion. The model is based on the assumption that theholding costs in the rented warehouse are more than the own warehouse. Asimple solution procedure also discussed to solve nonlinear cost function.Numerical example and sensitivity analysis are also used to describe the utilityof the model.展开更多
Traditional inventory models are mostly ignorant of the life cycle dynamics of a technology product;hence,they often fail to identify different dimensions of inventory research.This paper attempts to investigate the r...Traditional inventory models are mostly ignorant of the life cycle dynamics of a technology product;hence,they often fail to identify different dimensions of inventory research.This paper attempts to investigate the relationship between adoption behavior of customers using life cycle dynamics and associated trade credit policies in order to optimize the total inventory cost.The demand model used in this paper treats sales as a function of awareness diffusion and adoption.Awareness is considered as a function of feedback effects from users/customers.Retailer’s optimal strategies for short life cycle product under credit financing were determined analytically.Finally,numerical examples have been used to support the theoretical results.Theoretical results have further been used to gain some managerial insights.展开更多
文摘One of the major concerns for the technology market is the demand volatility andits impact on inventory policies. Demand volatility in the technology sector mayarise due to many factors namely customer choices, competition, growingmarket size, and so on. Often companies use rented warehouses to absorb anyfluctuations in demand. Unfortunately, warehouse and inventory researchesignore the phenomenon of growing market size to formulate policy decisions. Inthis paper, we proposed a two-warehouse inventory model with deterioration fortechnology products with linearly increasing market size where demand followsinnovation diffusion criterion. The model is based on the assumption that theholding costs in the rented warehouse are more than the own warehouse. Asimple solution procedure also discussed to solve nonlinear cost function.Numerical example and sensitivity analysis are also used to describe the utilityof the model.
文摘Traditional inventory models are mostly ignorant of the life cycle dynamics of a technology product;hence,they often fail to identify different dimensions of inventory research.This paper attempts to investigate the relationship between adoption behavior of customers using life cycle dynamics and associated trade credit policies in order to optimize the total inventory cost.The demand model used in this paper treats sales as a function of awareness diffusion and adoption.Awareness is considered as a function of feedback effects from users/customers.Retailer’s optimal strategies for short life cycle product under credit financing were determined analytically.Finally,numerical examples have been used to support the theoretical results.Theoretical results have further been used to gain some managerial insights.
