Note: A reply to "new product diffusion decisions under supply constraints"

Teck Hua Ho; Sergei Savin; Christian Terwiesch

doi:10.1287/mnsc.1110.1394

Note: A reply to "new product diffusion decisions under supply constraints"

Teck Hua Ho^*, Sergei Savin, Christian Terwiesch

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

12 Citations (Scopus)

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.

Original language	English
Pages (from-to)	1811-1812
Number of pages	2
Journal	Management Science
Volume	57
Issue number	10
DOIs	https://doi.org/10.1287/mnsc.1110.1394
Publication status	Published - Oct 2011
Externally published	Yes

ASJC Scopus Subject Areas

Strategy and Management
Management Science and Operations Research

Keywords

Bass diffusion model
Capacity planning
Marketing-operation interface

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10.1287/mnsc.1110.1394

Cite this

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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.",

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AB - 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.

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KW - Capacity planning

KW - Marketing-operation interface

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Note: A reply to "new product diffusion decisions under supply constraints"

Abstract

ASJC Scopus Subject Areas

Keywords

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