An Optimal Exiting Time for Old Generation Product in Supply Chain

Yu Qi; Yong Luo

doi:doi:10.11648/j.ajomis.20190401.12

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An Optimal Exiting Time for Old Generation Product in Supply Chain

Yu Qi, Yong Luo

Published in American Journal of Operations Management and Information Systems (Volume 4, Issue 1)

Received: 12 February 2019 Accepted: 25 March 2019 Published: 18 April 2019

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Abstract

(I) Brief problem description: With technology developing, many series products which have several generations appear in one market. The sales of new and old generations of a product in one market influences each other. (II) The study aim: In order to help the supply chain to obtain more benefits, this paper makes a study on the exiting of old generation products. (III) Method: Based on Fisher model and multi-generation product diffusion model, this paper establishes an optimal decision-making model for the exiting time of old generation product, and analyzes the relationship between the optimal exiting time of the old generation product and the technical level of the new generation product. (IV) Result and conclusion: Observations from this study include (1) when the profit of the new generation product sold only and that of the two generations sold simultaneously are the same, it is the optimal time for old generation product to exit market, and (2) the higher the technical level of new generation product is, the earlier old generation product will exit from market, and the more profit supply chain will get. (V) Significance: The research result will help some company make optimal decision-making for the exiting time of old generation product, and get more profit.

Published in	American Journal of Operations Management and Information Systems (Volume 4, Issue 1)
DOI	10.11648/j.ajomis.20190401.12
Page(s)	16-25
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Optimal Decision, Multi-generation Product, Product Exit, Exiting Time

References

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APA Style

Yu Qi, Yong Luo. (2019). An Optimal Exiting Time for Old Generation Product in Supply Chain. American Journal of Operations Management and Information Systems, 4(1), 16-25. https://doi.org/10.11648/j.ajomis.20190401.12

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ACS Style

Yu Qi; Yong Luo. An Optimal Exiting Time for Old Generation Product in Supply Chain. Am. J. Oper. Manag. Inf. Syst. 2019, 4(1), 16-25. doi: 10.11648/j.ajomis.20190401.12

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AMA Style

Yu Qi, Yong Luo. An Optimal Exiting Time for Old Generation Product in Supply Chain. Am J Oper Manag Inf Syst. 2019;4(1):16-25. doi: 10.11648/j.ajomis.20190401.12

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@article{10.11648/j.ajomis.20190401.12,
  author = {Yu Qi and Yong Luo},
  title = {An Optimal Exiting Time for Old Generation Product in Supply Chain},
  journal = {American Journal of Operations Management and Information Systems},
  volume = {4},
  number = {1},
  pages = {16-25},
  doi = {10.11648/j.ajomis.20190401.12},
  url = {https://doi.org/10.11648/j.ajomis.20190401.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajomis.20190401.12},
  abstract = {(I) Brief problem description: With technology developing, many series products which have several generations appear in one market. The sales of new and old generations of a product in one market influences each other. (II) The study aim: In order to help the supply chain to obtain more benefits, this paper makes a study on the exiting of old generation products. (III) Method:  Based on Fisher model and multi-generation product diffusion model, this paper establishes an optimal decision-making model for the exiting time of old generation product, and analyzes the relationship between the optimal exiting time of the old generation product and the technical level of the new generation product. (IV) Result and conclusion: Observations from this study include (1) when the profit of the new generation product sold only and that of the two generations sold simultaneously are the same, it is the optimal time for old generation product to exit market, and (2) the higher the technical level of new generation product is, the earlier old generation product will exit from market, and the more profit supply chain will get. (V) Significance: The research result will help some company make optimal decision-making for the exiting time of old generation product, and get more profit.},
 year = {2019}
}

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TY  - JOUR
T1  - An Optimal Exiting Time for Old Generation Product in Supply Chain
AU  - Yu Qi
AU  - Yong Luo
Y1  - 2019/04/18
PY  - 2019
N1  - https://doi.org/10.11648/j.ajomis.20190401.12
DO  - 10.11648/j.ajomis.20190401.12
T2  - American Journal of Operations Management and Information Systems
JF  - American Journal of Operations Management and Information Systems
JO  - American Journal of Operations Management and Information Systems
SP  - 16
EP  - 25
PB  - Science Publishing Group
SN  - 2578-8310
UR  - https://doi.org/10.11648/j.ajomis.20190401.12
AB  - (I) Brief problem description: With technology developing, many series products which have several generations appear in one market. The sales of new and old generations of a product in one market influences each other. (II) The study aim: In order to help the supply chain to obtain more benefits, this paper makes a study on the exiting of old generation products. (III) Method:  Based on Fisher model and multi-generation product diffusion model, this paper establishes an optimal decision-making model for the exiting time of old generation product, and analyzes the relationship between the optimal exiting time of the old generation product and the technical level of the new generation product. (IV) Result and conclusion: Observations from this study include (1) when the profit of the new generation product sold only and that of the two generations sold simultaneously are the same, it is the optimal time for old generation product to exit market, and (2) the higher the technical level of new generation product is, the earlier old generation product will exit from market, and the more profit supply chain will get. (V) Significance: The research result will help some company make optimal decision-making for the exiting time of old generation product, and get more profit.
VL  - 4
IS  - 1
ER  -

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Author Information

Yu Qi

Industrial Technology Research Institute, Zhengzhou University, Zhengzhou, China
Yong Luo

Industrial Technology Research Institute, Zhengzhou University, Zhengzhou, China

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Plain Text BibTeX RIS

APA Style

Yu Qi, Yong Luo. (2019). An Optimal Exiting Time for Old Generation Product in Supply Chain. American Journal of Operations Management and Information Systems, 4(1), 16-25. https://doi.org/10.11648/j.ajomis.20190401.12

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ACS Style

Yu Qi; Yong Luo. An Optimal Exiting Time for Old Generation Product in Supply Chain. Am. J. Oper. Manag. Inf. Syst. 2019, 4(1), 16-25. doi: 10.11648/j.ajomis.20190401.12

Copy | Download

AMA Style

Yu Qi, Yong Luo. An Optimal Exiting Time for Old Generation Product in Supply Chain. Am J Oper Manag Inf Syst. 2019;4(1):16-25. doi: 10.11648/j.ajomis.20190401.12

Copy | Download

@article{10.11648/j.ajomis.20190401.12,
  author = {Yu Qi and Yong Luo},
  title = {An Optimal Exiting Time for Old Generation Product in Supply Chain},
  journal = {American Journal of Operations Management and Information Systems},
  volume = {4},
  number = {1},
  pages = {16-25},
  doi = {10.11648/j.ajomis.20190401.12},
  url = {https://doi.org/10.11648/j.ajomis.20190401.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajomis.20190401.12},
  abstract = {(I) Brief problem description: With technology developing, many series products which have several generations appear in one market. The sales of new and old generations of a product in one market influences each other. (II) The study aim: In order to help the supply chain to obtain more benefits, this paper makes a study on the exiting of old generation products. (III) Method:  Based on Fisher model and multi-generation product diffusion model, this paper establishes an optimal decision-making model for the exiting time of old generation product, and analyzes the relationship between the optimal exiting time of the old generation product and the technical level of the new generation product. (IV) Result and conclusion: Observations from this study include (1) when the profit of the new generation product sold only and that of the two generations sold simultaneously are the same, it is the optimal time for old generation product to exit market, and (2) the higher the technical level of new generation product is, the earlier old generation product will exit from market, and the more profit supply chain will get. (V) Significance: The research result will help some company make optimal decision-making for the exiting time of old generation product, and get more profit.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - An Optimal Exiting Time for Old Generation Product in Supply Chain
AU  - Yu Qi
AU  - Yong Luo
Y1  - 2019/04/18
PY  - 2019
N1  - https://doi.org/10.11648/j.ajomis.20190401.12
DO  - 10.11648/j.ajomis.20190401.12
T2  - American Journal of Operations Management and Information Systems
JF  - American Journal of Operations Management and Information Systems
JO  - American Journal of Operations Management and Information Systems
SP  - 16
EP  - 25
PB  - Science Publishing Group
SN  - 2578-8310
UR  - https://doi.org/10.11648/j.ajomis.20190401.12
AB  - (I) Brief problem description: With technology developing, many series products which have several generations appear in one market. The sales of new and old generations of a product in one market influences each other. (II) The study aim: In order to help the supply chain to obtain more benefits, this paper makes a study on the exiting of old generation products. (III) Method:  Based on Fisher model and multi-generation product diffusion model, this paper establishes an optimal decision-making model for the exiting time of old generation product, and analyzes the relationship between the optimal exiting time of the old generation product and the technical level of the new generation product. (IV) Result and conclusion: Observations from this study include (1) when the profit of the new generation product sold only and that of the two generations sold simultaneously are the same, it is the optimal time for old generation product to exit market, and (2) the higher the technical level of new generation product is, the earlier old generation product will exit from market, and the more profit supply chain will get. (V) Significance: The research result will help some company make optimal decision-making for the exiting time of old generation product, and get more profit.
VL  - 4
IS  - 1
ER  -

Copy | Download