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An Optimal Exiting Time for Old Generation Product in Supply Chain
American Journal of Operations Management and Information Systems
Volume 4, Issue 1, March 2019, Pages: 16-25
Received: Feb. 12, 2019; Accepted: Mar. 25, 2019; Published: Apr. 18, 2019
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Yu Qi, Industrial Technology Research Institute, Zhengzhou University, Zhengzhou, China
Yong Luo, Industrial Technology Research Institute, Zhengzhou University, Zhengzhou, China
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(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.
Optimal Decision, Multi-generation Product, Product Exit, Exiting Time
To cite this article
Yu Qi, Yong Luo, An Optimal Exiting Time for Old Generation Product in Supply Chain, American Journal of Operations Management and Information Systems. Vol. 4, No. 1, 2019, pp. 16-25. doi: 10.11648/j.ajomis.20190401.12
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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