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An Inventory Decision Model When Demand Follows Innovation Diffusion Process under Effect of Technological Substitution
Joint Authors
Kumar, Alok
Jaggi, Chandra K.
Aggarwal, K. K.
Source
Issue
Vol. 2013, Issue 2013 (31 Dec. 2013), pp.1-10, 10 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2013-11-20
Country of Publication
Egypt
No. of Pages
10
Main Subjects
Economics & Business Administration
Business Administration
Abstract EN
The concept of marketing literature, especially innovation diffusion concept, plays a pivotal role in developing EOQ models in the field of inventory management.
The integration of marketing parameters, especially the idea of diffusion of new products with the inventory models, makes the models more realistic which is most essential while building the economic ordering policies of the products.
Also, because of rapid technological development, the diffusion of technology can also be viewed as an evolutionary process of replacement of an old technology by a new one.
Therefore, the effect of technological substitution along with the diffusion of new products must be taken into account while formulating economic ordering policies in an inventory model.
In this paper, a mathematical model has been developed for obtaining the Economic Order Quantity (EOQ) in which the demand of the product is assumed to follow an innovation diffusion process as proposed by Fourt and WoodLock (1960).
The idea of effect of technological substitution of products has been incorporated in the demand model to make the economic ordering policies more realistic.
A numerical example with sensitivity analysis of the optimal solution with respect to different parameters of the system is performed to illustrate the effectiveness of the model.
American Psychological Association (APA)
Aggarwal, K. K.& Jaggi, Chandra K.& Kumar, Alok. 2013. An Inventory Decision Model When Demand Follows Innovation Diffusion Process under Effect of Technological Substitution. Advances in Decision Sciences،Vol. 2013, no. 2013, pp.1-10.
https://search.emarefa.net/detail/BIM-507789
Modern Language Association (MLA)
Aggarwal, K. K.…[et al.]. An Inventory Decision Model When Demand Follows Innovation Diffusion Process under Effect of Technological Substitution. Advances in Decision Sciences No. 2013 (2013), pp.1-10.
https://search.emarefa.net/detail/BIM-507789
American Medical Association (AMA)
Aggarwal, K. K.& Jaggi, Chandra K.& Kumar, Alok. An Inventory Decision Model When Demand Follows Innovation Diffusion Process under Effect of Technological Substitution. Advances in Decision Sciences. 2013. Vol. 2013, no. 2013, pp.1-10.
https://search.emarefa.net/detail/BIM-507789
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-507789