New Product Launching with Pricing, Free Replacement, Rework, and Warranty Policies via Genetic Algorithmic Approach
- Title
- New Product Launching with Pricing, Free Replacement, Rework, and Warranty Policies via Genetic Algorithmic Approach
- Author
- Sarkar, Biswajit
- Keywords
- New product launching; Price and warranty; Production; Genetic algorithm
- Issue Date
- 2019-04
- Publisher
- ATLANTIS PRESS
- Citation
- INTERNATIONAL JOURNAL OF COMPUTATIONAL INTELLIGENCE SYSTEMS, v. 12, No. 2, Page. 519-529
- Abstract
- New products are appearing in the marketplace at an ever-increasing step. Their launching is either market driven, or technology
driven. Pricing and warranty policies play a vital role in launching of a new product, consequently growth of a company. In this
paper a decision model is proposed to determine the pricing and warranty polices of a newly launched product considering
free replacement during warranty period, and reworking during production process. We have assumed that the reworking is
performed for the defective items, which are produced when a machine shifts from in-control state to out-of-control state to make
them perfect. Profit function is formulated by combining the diffusion models and cost model. Structured optimal policies are
proposed using optimal control theory and genetic algorithm solution approach is employed to explore the optimum values of
price and warranty for every period of the product’s life cycle. Numerical example is presented considering different values of
model parameters. Further, sensitivity analysis is performed to study the impact of model parameters on the profit model. The
results of the paper will be greatly useful for the decision-makers, as it allows them to identify the role of the selected parameters
during the entire life cycle of the product, and to study the long-term policy of a newly launched product.
- URI
- https://www.atlantis-press.com/journals/ijcis/125905794https://repository.hanyang.ac.kr/handle/20.500.11754/113200
- ISSN
- 1875-6891; 1875-6883
- DOI
- 10.2991/ijcis.d.190401.001
- Appears in Collections:
- COLLEGE OF ENGINEERING SCIENCES[E](공학대학) > INDUSTRIAL AND MANAGEMENT ENGINEERING(산업경영공학과) > Articles
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