IDEAS home Printed from https://ideas.repec.org/a/wsi/ijitmx/v11y2014i05ns021987701450028x.html
   My bibliography  Save this article

Economic Order Quantity Model with Innovation Diffusion Criterion under Influence of Price-Dependent Potential Market Size

Author

Listed:
  • K. K. Aggarwal

    (Department of Operational Research, Faculty of Mathematical Sciences, New Academic Block, University of Delhi, Delhi 110007, India)

  • Alok Kumar

    (Department of Operational Research, Faculty of Mathematical Sciences, New Academic Block, University of Delhi, Delhi 110007, India)

Abstract

In last few decades various models developed under inventory control section whether of probabilistic or deterministic nature did not consider the effect of marketing parameters. The marketing parameters especially associated with innovation diffusion theory make the inventory models more realistic. In this paper, an inventory model has been proposed based on the explicit assumptions of interaction of marketing parameters to the optimal inventory replenishment policy. A time-dependent innovation driven demand has been incorporated in the basic economic order quantity (EOQ) model to know the realistic features of the model. This model assumes that potential market size is dynamic over time and is dependent on the price of the product. The model is illustrated with a numerical example and to know the effectiveness of the model a sensitivity analysis of the optimal solution with respect to different parameters has been performed.

Suggested Citation

  • K. K. Aggarwal & Alok Kumar, 2014. "Economic Order Quantity Model with Innovation Diffusion Criterion under Influence of Price-Dependent Potential Market Size," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 11(05), pages 1-25.
    • Handle: RePEc:wsi:ijitmx:v:11:y:2014:i:05:n:s021987701450028x
    DOI: 10.1142/S021987701450028X
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S021987701450028X
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S021987701450028X?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Saurabh Panwar & P. K. Kapur & Ompal Singh, 2019. "Modeling Technological Substitution by Incorporating Dynamic Adoption Rate," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(01), pages 1-24, February.
    2. Udayan Chanda & Alok Kumar, 2019. "Optimization of EOQ Model for New Products Under Multi-Stage Adoption Process," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(02), pages 1-25, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:ijitmx:v:11:y:2014:i:05:n:s021987701450028x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijitm/ijitm.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.