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

Kuei Chen Chiu; Chun Wu Yeh; Chih Chiang Fang

doi:10.1109/IEEM.2010.5674598

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

Kuei Chen Chiu
, Chun Wu Yeh
, Chih Chiang Fang

Department of Industrial and Information Management

Research output: Chapter in Book/Report/Conference proceeding › Conference 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 language	English
Title of host publication	IEEM2010 - IEEE International Conference on Industrial Engineering and Engineering Management
Pages	1683-1687
Number of pages	5
DOIs	https://doi.org/10.1109/IEEM.2010.5674598
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/Territory	China
City	Macao
Period	10-12-07 → 10-12-10

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 9 Industry, Innovation, and Infrastructure

All Science Journal Classification (ASJC) codes

Industrial and Manufacturing Engineering

Access to Document

10.1109/IEEM.2010.5674598

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). Article 5674598 (IEEM2010 - IEEE International Conference on Industrial Engineering and Engineering Management). https://doi.org/10.1109/IEEM.2010.5674598

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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.",

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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 proceeding › Conference contribution

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

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