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 language | English |
|---|---|
| Title of host publication | IEEM2010 - IEEE International Conference on Industrial Engineering and Engineering Management |
| Pages | 1683-1687 |
| Number of pages | 5 |
| DOIs | |
| Publication status | Published - 2010 Dec 1 |
| Event | IEEE International Conference on Industrial Engineering and Engineering Management, IEEM2010 - Macao, China Duration: 2010 Dec 7 → 2010 Dec 10 |
Publication series
| Name | IEEM2010 - IEEE International Conference on Industrial Engineering and Engineering Management |
|---|
Other
| Other | IEEE International Conference on Industrial Engineering and Engineering Management, IEEM2010 |
|---|---|
| Country | China |
| City | Macao |
| Period | 10-12-07 → 10-12-10 |
Fingerprint
All Science Journal Classification (ASJC) codes
- Industrial and Manufacturing Engineering
Cite this
}
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 proceeding › Conference contribution
TY - GEN
T1 - An EMQ model with time-varying demand over the product life cycle
AU - Chiu, Kuei Chen
AU - Yeh, Chun Wu
AU - Fang, Chih Chiang
PY - 2010/12/1
Y1 - 2010/12/1
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=78751693469&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=78751693469&partnerID=8YFLogxK
U2 - 10.1109/IEEM.2010.5674598
DO - 10.1109/IEEM.2010.5674598
M3 - Conference contribution
AN - SCOPUS:78751693469
SN - 9781424485031
T3 - IEEM2010 - IEEE International Conference on Industrial Engineering and Engineering Management
SP - 1683
EP - 1687
BT - IEEM2010 - IEEE International Conference on Industrial Engineering and Engineering Management
ER -