Optimization of EOQ Model for New Products Under Multi-Stage Adoption Process

Udayan Chanda and Alok Kumar ()
Additional contact information
Udayan Chanda: Department of Management, BITS Pilani, Pilani Campus, Pilani 333031, Rajasthan, India
Alok Kumar: FORE School of Management, B-18, Qutub Institutional Area, New Delhi 110016, India

International Journal of Innovation and Technology Management (IJITM), 2019, vol. 16, issue 02, 1-25

Abstract: The available literature on new product sales growth models mostly ignores two important aspects of technology diffusion: diffusion of awareness and the actual adoption. This characteristic of technology adoption is extremely important from inventory management perspective as buying decision is often influenced due to time lag between information propagation and actual adoptions. As high-technology market is extremely unpredictable, interactions between technological evolutions and customer feedback effects play an important role in technology diffusion. The demand models mostly considered in inventory literature to develop economic order quantity (EOQ) model ignore this important element of technology diffusion. In this paper, we proposed an EOQ model for high-technology products by incorporating customer feedback effects along with market heterogeneity to optimize the total inventory cost. The demand model considered in the paper follows lifecycle phenomenon and is sensitive to unit selling price. To remove any ambiguity pertaining to costs, fuzzy nature of ordering and inventory carrying cost is considered in the paper.

Keywords: Stage-wise diffusion; technological innovations; EOQ; fuzzy variables; trapezoidal membership (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0219877019500159
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:ijitmx:v:16:y:2019:i:02:n:s0219877019500159

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0219877019500159

Access Statistics for this article

International Journal of Innovation and Technology Management (IJITM) is currently edited by H K Tang

More articles in International Journal of Innovation and Technology Management (IJITM) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().