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Life cycle profit – reducing supply risks by integrated demand management


Reiner, Gerald; Natter, Martin; Drechsler, Wenzel (2009). Life cycle profit – reducing supply risks by integrated demand management. Technology Analysis and Strategic Management, 21(5):653-664.

Abstract

Technology advances and competitive pressure have shortened the life cycles for many products (e.g., in the mobile phone industry) and drastically increase the penalty of holding obsolete finished goods inventories. Standard planning methods lead to high forecasting errors and - as a consequence - to high safety inventories. In this context, an appropriate service level is of major interest. We propose a new model for the integrated analysis of alternative pricing strategies and their effects on the service level. In particular, we show how our model supports the identification of the best service level in terms of customer satisfaction life cycle profit.

Abstract

Technology advances and competitive pressure have shortened the life cycles for many products (e.g., in the mobile phone industry) and drastically increase the penalty of holding obsolete finished goods inventories. Standard planning methods lead to high forecasting errors and - as a consequence - to high safety inventories. In this context, an appropriate service level is of major interest. We propose a new model for the integrated analysis of alternative pricing strategies and their effects on the service level. In particular, we show how our model supports the identification of the best service level in terms of customer satisfaction life cycle profit.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Language:English
Date:2009
Deposited On:09 Dec 2016 12:46
Last Modified:18 Feb 2018 01:06
Publisher:Taylor & Francis
ISSN:0953-7325
OA Status:Closed
Publisher DOI:https://doi.org/10.1080/09537320902969190
Other Identification Number:merlin-id:14199

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