New product development: the performance and time-to-market tradeoff
Article Abstract:
Firms are usually faced with the challenge of balancing the tradeoff between reduction of new product development cycle time and enhancements in product performance. An additive multistage model of new product development process which explicitly describes the tradeoff is presented. This framework demonstrates that it is most beneficial to assign maximal time to the most productive development stage if product enhancements are additive. It then explains how optimal time-to-market and its related product performance targets differ with exogenous factors. The model also indicates that certain new product development measures can be suboptimal if firms are attempting to optimize their profits. The minimal speed of improvement capability needed for new product development is a complex function of the firm's rate of development labor expense, current market performance, product category demand rate, new product profit margin, and time window of opportunity.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1996
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Competing in product and service: a product life-cycle model
Article Abstract:
A product life-cycle model has been developed to investigate a set of strategic choices faced by a durable good manufacturer as the joint product/service package is being designed. The model is aimed at emphasizing the interdependence between product and service sales. Significant choice parameters include product price, quality of after-sales service and the price of after-sales service. A competitive framework is adopted since the choices are suggested to be primarily driven by market forces. The model can be used for supporting the valuation of alternative product designs in consideration of the tradeoff between product sale profit and the provision of after-sales service. It can also help evaluate the asset value of a customer base.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1997
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Multi-agent customer allocation in a stochastic service system
Article Abstract:
A case in which every agent, acting as decision maker, seeks to optimize their customer allocation decisions in a stochastic service system, is analyzed as a noncooperative game. It is shown that an equilibrium point to such a game exists, and the conditions for which this equilibrium point is unique are also given. The efficiency of the multi-agent system is compared with that of a one-agent system; in terms of customer welfare, the multi-agent system is, in general, not as efficient as the one-agent system.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1985
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