An EMQ model with time-varying demand over the product life cycle

Kuei Chen Chiu, Chun Wu Yeh, Chih Chiang Fang

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

The Economic Manufacturing Quantity (EMQ) problems that appear in the literature assume that the demand rate is a constant and then attempt to find the optimal production cycle. The assumption may be appropriate for everyday commodities with a stable demand rate but it is not suitable for technology or fashion products because their demand rate is not constant in the product life cycle. The demand rate for such products life cycle will gradually increase over time, reach a peak, and then decline. Therefore, the optimal lengths of each planning production cycle would be not equal, which means that the traditional EMQ model is not applicable in such situations. For better cost management, an alternative EMQ model is thus proposed in this study. The proposed model uses the diffusion model proposed by Bass (1969) to predict product demand rates over product life cycles to minimize the related inventory cost based. In addition, this research also analyzes the effect of different demand characteristics upon planning product life cycles.

Original languageEnglish
Title of host publicationIEEM2010 - IEEE International Conference on Industrial Engineering and Engineering Management
Pages1683-1687
Number of pages5
DOIs
Publication statusPublished - 2010 Dec 1
EventIEEE International Conference on Industrial Engineering and Engineering Management, IEEM2010 - Macao, China
Duration: 2010 Dec 72010 Dec 10

Publication series

NameIEEM2010 - IEEE International Conference on Industrial Engineering and Engineering Management

Other

OtherIEEE International Conference on Industrial Engineering and Engineering Management, IEEM2010
CountryChina
CityMacao
Period10-12-0710-12-10

Fingerprint

Life cycle
Economics
Planning
Costs

All Science Journal Classification (ASJC) codes

  • Industrial and Manufacturing Engineering

Cite this

Chiu, K. C., Yeh, C. W., & Fang, C. C. (2010). An EMQ model with time-varying demand over the product life cycle. In IEEM2010 - IEEE International Conference on Industrial Engineering and Engineering Management (pp. 1683-1687). [5674598] (IEEM2010 - IEEE International Conference on Industrial Engineering and Engineering Management). https://doi.org/10.1109/IEEM.2010.5674598
Chiu, Kuei Chen ; Yeh, Chun Wu ; Fang, Chih Chiang. / An EMQ model with time-varying demand over the product life cycle. IEEM2010 - IEEE International Conference on Industrial Engineering and Engineering Management. 2010. pp. 1683-1687 (IEEM2010 - IEEE International Conference on Industrial Engineering and Engineering Management).
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Chiu, KC, Yeh, CW & Fang, CC 2010, An EMQ model with time-varying demand over the product life cycle. in IEEM2010 - IEEE International Conference on Industrial Engineering and Engineering Management., 5674598, IEEM2010 - IEEE International Conference on Industrial Engineering and Engineering Management, pp. 1683-1687, IEEE International Conference on Industrial Engineering and Engineering Management, IEEM2010, Macao, China, 10-12-07. https://doi.org/10.1109/IEEM.2010.5674598

An EMQ model with time-varying demand over the product life cycle. / Chiu, Kuei Chen; Yeh, Chun Wu; Fang, Chih Chiang.

IEEM2010 - IEEE International Conference on Industrial Engineering and Engineering Management. 2010. p. 1683-1687 5674598 (IEEM2010 - IEEE International Conference on Industrial Engineering and Engineering Management).

Research output: Chapter in Book/Report/Conference proceedingConference contribution

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Chiu KC, Yeh CW, Fang CC. An EMQ model with time-varying demand over the product life cycle. In IEEM2010 - IEEE International Conference on Industrial Engineering and Engineering Management. 2010. p. 1683-1687. 5674598. (IEEM2010 - IEEE International Conference on Industrial Engineering and Engineering Management). https://doi.org/10.1109/IEEM.2010.5674598