Browse > Article

Modeling and Evaluating Inventory Replenishment for Short Life-cycle Products  

Wang, Ching-Ho (Department of Industrial Management, Taiwan University of Science and Technology)
Lint, Shih-Wei (Department of Information Management, Chang Gung University)
Chou, Shuo-Yan (Department of Industrial Management, Taiwan University of Science and Technology)
Tsai, Chun-Hsiang (Department of Industrial Management, Taiwan University of Science and Technology)
Publication Information
Journal of Korean Institute of Industrial Engineers / v.34, no.4, 2008 , pp. 386-397 More about this Journal
Abstract
Due to the rapid advancement of technologies, a growing number of innovative products with a short life-cycle have been introduced to the market. As the life-cycles of such products are shorter than those of durable goods, the demand variation during the life-cycle adds to the difficulty of inventory management. Traditional inventory planning models and techniques mostly deal with products that have long life-cycles. The assumptions on the demand pattern and subsequent solution approaches are generally, not suitable for dealing with products with short life-cycles. In this research, inventory replenishment problems based on the logistic demand model are formulated and solved to facilitate the management of products with short life-cycles. An extended Wagner- Whitin approach is used to determine the replenishment cycle, schedules and lot-sizes.
Keywords
Inventory Replenishment; Logistic Model; Short Product Life-cycle; Life-cycle Cost Evaluation; Present Value;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Trippi RR. and Lewin DE. (1974), A present value formulation of the classical EOQ problem, Decision Science, 5(1), 30-35   DOI
2 Zhou Y-W. and Yang S-L. (2003), An optimal replenishment policy for items with inventory-level-dependent demand and fixed lifetime under the LIFO policy, Journal of the Operational Research Society, 54(6), 585-593   DOI   ScienceOn
3 Buzacott JA. (1975), Economic order quantities with inflation. Operational Research Quarterly, 26(3), 553-558   DOI
4 MarchettiC, Meyer PS., and Ausubel JH. (1996), Human population dynamics revisited with the logistic model : How much can be modeled and predicted. Technological Forecasting and Social Change, 52, 1-30   DOI   ScienceOn
5 Moore WL. (1993), Pessemier EA. Product planning and management : designing and delivering value. McGraw-Hill : New York
6 Thomas J. (1995), Down but not out. Distribution, 6-12
7 Rogers EM. (1983), Diffusion of innovations, 3rd Edition. The Free Press : New York
8 Urban GL., Hauser JR., Design and marketing of new products (1993), Prentice-Hall : NJ
9 Bass FM. (1969), A new product growth for model consumer durables, Management Science, 15(5), 215-227   DOI   ScienceOn
10 Misra RB. (1979), A note on optimal inventory management under inflation, Navel Research Logistics Quarterly, 26(1), 161-165   DOI
11 Mahajan V., Muller E., and Bass FM. (1990), New product diffusion models in marketing : a review and directions for research, Journal of Marketing, 54, 1-26
12 Brosseau LJA. (1982), An inventory replenishment policy for the case of a linear decreasing trend in demand, INFOR Journal, 20(2), 252-257
13 Donaldson WA. (1977), Inventory replacement policy for a linear trend in demand-an analytical solution, Operational Research Quarterly, 28(3), 663-670   DOI
14 Friedman MF. (1981), Power-form demand and cost functions in inventory lot size models, Computers and Operations Research, 8(3), 159-167   DOI   ScienceOn
15 Balkhi ZT, Benkherouf L. (2004), On an inventory model for deteriorating items with stock dependent and time-varying demand, Computers and Operations Research, 31(2), 223-240   DOI   ScienceOn
16 Lilien GL, Kotler P. and Moorthy KS. (1992), Marketing models, Prentice-Hall : NJ
17 McGuire T, Staelin R. (1983), An industrial equilibrium analysis of downstream vertical integration, Marketing Science, 2(2), 161-192   DOI   ScienceOn
18 Ostrosky AL. (1979), Koch JV. Introduction to mathematical economics. Houghton Mifflin : Boston
19 Chou S-Y, Chang S-L., and Yang W-D. (2001), Optimal multiple delivery schedule for demand in logistic model. International Journal of Production Economics, 73(3), 241-249   DOI   ScienceOn
20 Ho T-H, Savin S and Terwiesch C. (2002), Managing demand and sales dynamics in new product diffusion under supply constraint, Management Science, 48(2), 187-206   DOI   ScienceOn
21 Goyal SK, Morin D., and Nebebe F. (1992), The finite horizon trended inventory replenishment problem with shortages, Journal of the Operational Research Society, 43(12), 1173-1178   DOI
22 Chung K-J. (2003), An algorithm for an inventory model with inventory-level-dependent demand rate, Computers and Operations Research, 30(9), 1311-1317   DOI   ScienceOn
23 Lapide L. (2001), A simple approach for short product lifecycle forecasting, The Journal of Business Forecasting Method and Systems, 20, 18-20
24 Hadley G. (1964), A comparison of order quantities computed using the average annual cost and the discounted cost, Management Science, 10(3), 472-476   DOI   ScienceOn
25 Kumar S. and Swaminathan JM. (2003), Diffusion of innovations under supply constraints, Operation Research, 51(6), 866-879   DOI   ScienceOn
26 Datta TK, Pal AK. (1991), Effects of inflation and time-value of money on an inventory model with linear time-dependent demand rate and shortages, European Journal of Operational Research, 52(3), 326-333   DOI   ScienceOn
27 Resh M., Friedman M., and Barbosa LC. (1976), On a general solution of the deterministic lot size problem with time-proportional demand, Operations Research, 24(4), 718-725   DOI   ScienceOn
28 Bierman Jr., H and Thomas J. (1977), Inventorydecisions under inflationary conditions, Decision Sciences, 8(1), 151-155   DOI
29 Little J. (1975), BRANDAID : A marketing-mix model, Part I : Structure; Part II : Implementation, Operations Research, 23, 628-673   DOI   ScienceOn
30 Urban TL. (2005), Inventory models with inventory-level-dependent demand : A comprehensive review and unifying theory, European Journal of Operational Research, 162(3), 792-804   DOI   ScienceOn
31 Mitra A., Cox JF., and Jesse Jr. RR. (1984), A note on determining order quantities with a linear tread in demand, Journal of the Operational Research Society, 35(2), 141 -144   DOI   ScienceOn
32 Silver EA. (1979), Simple inventory replenishment decision rule for a linear trend in demand, Journal of the Operational Research Society, 30(1), 71-75   DOI
33 Barbosa LC and Friedman M. (1979), Inventory lot size models with vanishing market, Journal of the Operational Research Society, 30(12), 1129-1132   DOI
34 Baxter M. (1995), Product design : practical methods for the systematic development of new products. Chapman and Hall : London
35 Chen J-M. (1998), An inventory model for deteriorating items with time-proportional demand and shortages under inflation and time discounting, International Journal of Production Economics, 55(1), 21-30   DOI   ScienceOn
36 Meyer PS, Yung JW. and Ausubel JH. (1999), A primer on logistic growth and substitution : the mathematics of the loglet lab software, Technological Forecasting and Social Change, 61(3), 247-271
37 Wagner HM. and Whitin TM. (1958), Dynamic version of the economic lot size model, Management Science, 5(1), 89-96   DOI   ScienceOn
38 Banks RB. (1994), Growth and diffusion phenomena : mathematical frameworks and applications, Springer : Berlin