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Note: A Reply to "New Product Diffusion Decisions Under Supply Constraints"

Author

Listed:
  • Teck-Hua Ho

    (Haas School of Business, University of California, Berkeley, Berkeley, California 94720)

  • Sergei Savin

    (The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania 19104)

  • Christian Terwiesch

    (The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania 19104)

Abstract

In our prior work on product diffusions in presence of a capacity constraint, we postulated that a firm operating in such an environment should always attempt to fulfill as much of the present demand as is possible with the capacity constraint. In other words, the firm would never have demand backlogged while accumulating inventory. In this note, we derive a sufficient condition for the optimality of such fulfillment policy. This paper was accepted by Candace A. Yano, operations management.

Suggested Citation

  • Teck-Hua Ho & Sergei Savin & Christian Terwiesch, 2011. "Note: A Reply to "New Product Diffusion Decisions Under Supply Constraints"," Management Science, INFORMS, vol. 57(10), pages 1811-1812, October.
    • Handle: RePEc:inm:ormnsc:v:57:y:2011:i:10:p:1811-1812
    DOI: 10.1287/mnsc.1110.1394
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    References listed on IDEAS

    as
    1. Sunil Kumar & Jayashankar M. Swaminathan, 2003. "Diffusion of Innovations Under Supply Constraints," Operations Research, INFORMS, vol. 51(6), pages 866-879, December.
    2. Teck-Hua Ho & Sergei Savin & Christian Terwiesch, 2002. "Managing Demand and Sales Dynamics in New Product Diffusion Under Supply Constraint," Management Science, INFORMS, vol. 48(2), pages 187-206, February.
    3. Wenjing Shen & Izak Duenyas & Roman Kapuscinski, 2011. "New Product Diffusion Decisions Under Supply Constraints," Management Science, INFORMS, vol. 57(10), pages 1802-1810, October.
    4. Teck-Hua Ho & Xuanming Su, 2009. "Peer-Induced Fairness in Games," American Economic Review, American Economic Association, vol. 99(5), pages 2022-2049, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

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    4. Schwarz, Justus Arne & Tan, Barış, 2021. "Optimal sales and production rollover strategies under capacity constraints," European Journal of Operational Research, Elsevier, vol. 294(2), pages 507-524.
    5. Wenjing Shen & Izak Duenyas & Roman Kapuscinski, 2014. "Optimal Pricing, Production, and Inventory for New Product Diffusion Under Supply Constraints," Manufacturing & Service Operations Management, INFORMS, vol. 16(1), pages 28-45, February.
    6. Negahban, Ashkan & Smith, Jeffrey S., 2018. "Optimal production-sales policies and entry time for successive generations of new products," International Journal of Production Economics, Elsevier, vol. 199(C), pages 220-232.
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