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The impact of shorter product life cycles on inventory mismatch costs: a newsvendor model
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Resumo(s)
The shortening of product life cycles has been an evident trend overtime. As such, businesses’ operation strategies underwent changes, yet little focus has been given to its effect on inventory management. A such, this research has the purpose of creating a mathematical tool to assess the impact on inventory mismatch costs as the cycles shorten, and its consequences on profits. For that, a Newsvendor Model is built, which is applied to a 3 and 2-period cycle. The findings describe the impacts measured, followed by conclusions. This research is finalized by the model’s limitations and indications for future research.
Descrição
Palavras-chave
Product life cycle Inventory management Mismatch costs Newsvendor model