A model for new product introduction under resource constraints and product interdependence. (2016)

• Record Type: Journal Article
• Authors: Dash, Binay; Narendran, T.T.; Gajanand, M.S.
• Is Part Of: International journal of operational research. Volume 26:Number 4(2016)
• Page Start: 473
• Page End: 508
• Publication Date: 2016
• Subjects: product line selection -- new product introduction -- NPI -- product entry timing -- product development scheduling -- constrained resource allocation -- interdependent products -- operations research -- modelling -- resource constraints -- product interdependence -- mixed integer linear programming -- MILP -- branch-and-bound; Operations research -- Periodicals; 003.05
• Languages: English
• ISSNs: 1745-7645

Abstract

Firms face the challenge of timing product entry decisions. Usually, firms will have a set of product ideas on the bench and a constrained amount of product development resources. Product development happens in multiple stages. Deciding on which products should be processed through the product development stages in a resource constrained environment to help the firm achieve maximum revenue/profit is a challenging problem. The complexity gets further increased if products are inter-related/sequential in terms of resource needs with respect to attributes. This paper presents a mixed integer linear programme (MILP) model which can help an organisation to select on products it wants to launch and feasible launch timings considering multi-stage product development cycle in a resource constrained environment. This paper further proposes an enhancement to the MILP and a branch-n-bound (B&B) algorithm which will help the firm figure out optimum strategies if products are inter-related.