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Supply Chain Configuration For Diffusion Of New Products: An Integrated Optimization Approach, Haitao Li, Mehdi Amini
Supply Chain Configuration For Diffusion Of New Products: An Integrated Optimization Approach, Haitao Li, Mehdi Amini
Haitao Li
We develop an integrated/hybrid optimization model for configuring new products’ supply chains while explicitly considering the impact of demand dynamics during new products’ diffusion. The hybrid model simultaneously determines optimal production/sales plan and supply chain configuration. The production and sales plan provides decisions on the optimal timing to launch a new product, as well as the production and sales quantity in each planning period. The supply chain configuration provides optimal selection of options and safety stock level kept at each supply chain function. Extensive computational experiments on randomly generated testbed problems indicate that the hybrid modeling and solution approach significantly …