Note: A Reply to "New Product Diffusion Decisions Under Supply Constraints"

Teck Ho (), Sergei Savin () and Christian Terwiesch ()
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Sergei Savin: The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania 19104
Christian Terwiesch: The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania 19104

Management Science, 2011, vol. 57, issue 10, 1811-1812

Abstract: In our prior work on product diffusions in presence of a capacity constraint, we postulated that a firm operating in such an environment should always attempt to fulfill as much of the present demand as is possible with the capacity constraint. In other words, the firm would never have demand backlogged while accumulating inventory. In this note, we derive a sufficient condition for the optimality of such fulfillment policy. This paper was accepted by Candace A. Yano, operations management.

Keywords: marketing-operation interface; Bass diffusion model; capacity planning (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (8)

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