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THE OPTIMAL PRODUCTION AND SALES POLICY FOR A NEW PRODUCT WITH NEGATIVE WORD-OF-MOUTH
Yan, Xiaoming1; Cao, Ping2; Zhang, Minghui2; Liu, Ke2
2011-02-01
发表期刊JOURNAL OF INDUSTRIAL AND MANAGEMENT OPTIMIZATION
ISSN1547-5816
卷号7期号:1页码:117-137
摘要In this paper, we consider a firm which maximizes its profit by determining the production and sales policies for a new product during the life-time of the product. Because of capacity constraint, we extend Bass demand process a more general case including the negative effectiveness of word-of-mouth. We analyze the production and sales policies in two cases: strong negative word-of-mouth and weak negative word-of-mouth. In the case of strong negative word-of-mouth, we show that myopic policy is optimal under some mild conditions. In the case of weak negative word-of-mouth, we show that build-up policy is optimal in a special case of negligible holding cost and discount rate. However, for positive holding cost and discount rate, we compare myopic policy with build-up policy by numerical examples, and show that the build-up policy is no longer a robust approximation to the optimal policy.
关键词Capacity constraint word-of-mouth new product optimal policy
DOI10.3934/jimo.2011.7.117
语种英语
资助项目National Natural Science Foundation of China[70731003] ; National Natural Science Foundation of China[70971125] ; 973 Project[2010CB731400]
WOS研究方向Engineering ; Operations Research & Management Science ; Mathematics
WOS类目Engineering, Multidisciplinary ; Operations Research & Management Science ; Mathematics, Interdisciplinary Applications
WOS记录号WOS:000286927300009
出版者AMER INST MATHEMATICAL SCIENCES
引用统计
文献类型期刊论文
条目标识符http://ir.amss.ac.cn/handle/2S8OKBNM/12336
专题应用数学研究所
通讯作者Yan, Xiaoming
作者单位1.Dongguan Univ Technol, Sch Software, Dongguan 523808, Guangdong, Peoples R China
2.Chinese Acad Sci, Acad Math & Syst Sci, Inst Appl Math, Beijing 100190, Peoples R China
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Yan, Xiaoming,Cao, Ping,Zhang, Minghui,et al. THE OPTIMAL PRODUCTION AND SALES POLICY FOR A NEW PRODUCT WITH NEGATIVE WORD-OF-MOUTH[J]. JOURNAL OF INDUSTRIAL AND MANAGEMENT OPTIMIZATION,2011,7(1):117-137.
APA Yan, Xiaoming,Cao, Ping,Zhang, Minghui,&Liu, Ke.(2011).THE OPTIMAL PRODUCTION AND SALES POLICY FOR A NEW PRODUCT WITH NEGATIVE WORD-OF-MOUTH.JOURNAL OF INDUSTRIAL AND MANAGEMENT OPTIMIZATION,7(1),117-137.
MLA Yan, Xiaoming,et al."THE OPTIMAL PRODUCTION AND SALES POLICY FOR A NEW PRODUCT WITH NEGATIVE WORD-OF-MOUTH".JOURNAL OF INDUSTRIAL AND MANAGEMENT OPTIMIZATION 7.1(2011):117-137.
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