New publication Prof. Ralf Seifert forthcoming in EJOR
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The article entitled "On the Optimal Frequency of Multiple Generation Product Introductions" is forthcoming in the European Journal of Operational Research.
Abstract
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 product price, the technical decay and installed base effects. We analytically examine the optimal frequency for introducing new product generations as a function of these parameters.
Reference
Shuangqing Liao and Ralf W. Seifert (2015) “On the Optimal Frequency of Multiple Generation Product Introductions,” European Journal of Operational Research (EJOR), Vol. 245 (3), pp. 805-814.
