A Study of Coordinating Pricing and Inventory Decisions along Product Life Cycle Using WCDMA Sales Data in Taiwan

碩士 === 國立東華大學 === 運籌管理研究所 === 99 === For consumers, the variation of price will influences their purchasing quantity. In accordance with the sensitivity of customer demand the businesses will develop the price. When customers are willing to purchase quantity and accept the purchase price, busine...

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Bibliographic Details
Main Authors: Nie-Wen Huang, 黃聶雯
Other Authors: Juh-Wen Hwang
Format: Others
Language:zh-TW
Published: 2010
Online Access:http://ndltd.ncl.edu.tw/handle/33394622616328886940
Description
Summary:碩士 === 國立東華大學 === 運籌管理研究所 === 99 === For consumers, the variation of price will influences their purchasing quantity. In accordance with the sensitivity of customer demand the businesses will develop the price. When customers are willing to purchase quantity and accept the purchase price, businesses can predict the product life cycle. Product life cycle is a tool to forecast planning and control for marketers, and it can explain the products and the situation on the market, and control effective inventory cost for business. The study focuses system of WCDMA in the Taiwanese market. The historical data consists of the average monthly mobile phone prices and monthly mobile phone sales from July 2005 to March 2007. Once we know the prices and sales figures, we add the concept of price elasticity of demand to observe the sensitivity of customer demand for a product. After the industries observe the customer price sensitivity, it will adjust the price. Then, the Generalized Bass Model (Bass, 1994) can be used for planning out the product’s life cycle. After planning the product’s life cycle using the Generalized Bass Model, we can control the inventory management process. Because the marketing is change vary fast, we have to check the inventory every week, and assume constant elasticity in the month. We use the EOQ (Economic Order Quantity) model or Silver-Meal Model to develop a system for ordering materials, and thereby help the business to effectively control inventory costs. We can to know how the total profit will change. The results show that we consider elasticity strategy’s effect on the product life cycle and inventory management control, the total profit is greater than if we were to long-term price decline and consider inventory control. The business considers customer price sensitivity and adjusts the price. It is to do more inventory control and to earn more money. The other hand, if we consider the elasticity strategy and other long-term price decline strategy’s profit that use the different inventory management strategy, the result is not different very much.