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Modeling Process Switching Decisions Under Product Life Cycle Uncertainty

Constantin A V, Ranga Ramasesh, Devanath Tirupati
Journal Name
International Journal of Production Economics
Journal Publication
others
Publication Year
2010
Journal Publications Functional Area
Production & Operations Management
Publication Date
Vol. 126, No.23, PP 236-246, August 2010
Abstract

We address the process-switching decision of a firm that adopts a mixed process strategy with respect to a new product in the context of product life cycle uncertainty. A mixed process strategy uses a flexible process in the early stages of the product's life cycle and later switches to a dedicated process to gain cost economies. We present a model that captures uncertainty through alternative life-cycle demand functions to guide the process-switching decision.

Modeling Process Switching Decisions Under Product Life Cycle Uncertainty

Author(s) Name: Constantin A V, Ranga Ramasesh, Devanath Tirupati
Journal Name: International Journal of Production Economics
Volume: Vol. 126, No.23, PP 236-246, August 2010
Year of Publication: 2010
Abstract:

We address the process-switching decision of a firm that adopts a mixed process strategy with respect to a new product in the context of product life cycle uncertainty. A mixed process strategy uses a flexible process in the early stages of the product's life cycle and later switches to a dedicated process to gain cost economies. We present a model that captures uncertainty through alternative life-cycle demand functions to guide the process-switching decision.