International Journal of Computational Intelligence Systems

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Volume 12, Issue 2, 2019, Pages 519 - 529

New Product Launching with Pricing, Free Replacement, Rework, and Warranty Policies via Genetic Algorithmic Approach

Authors
Vijay Kumar1, Biswajit Sarkar2, *, Alok Nath Sharma3, Mandeep Mittal1
1Department of Mathematics, Amity Institute of Applied Sciences, Amity University, Noida 201301, India
2Department of Industrial and Management Engineering, Hanyang University, Ansan Gyeonggi-do 426 791, South Korea
3Department of Mechanical and Automation Engineering, Amity School of Engineering and Technology, New Delhi 110061, India
*Corresponding author. Email: bsbiswajitsarkar@gmail.com
Corresponding Author
Biswajit Sarkar
Received 3 October 2017, Accepted 5 April 2018, Available Online 31 January 2019.
DOI
10.2991/ijcis.d.190401.001How to use a DOI?
Keywords
New product launching; Price and warranty; Production; Genetic algorithm
Abstract

New products are appearing in the marketplace at an ever-increasing step. Their launching is either market driven, or technology driven. Pricing and warranty policies play a vital role in launching of a new product, consequently growth of a company. In this paper a decision model is proposed to determine the pricing and warranty polices of a newly launched product considering free replacement during warranty period, and reworking during production process. We have assumed that the reworking is performed for the defective items, which are produced when a machine shifts from in-control state to out-of-control state to make them perfect. Profit function is formulated by combining the diffusion models and cost model. Structured optimal policies are proposed using optimal control theory and genetic algorithm solution approach is employed to explore the optimum values of price and warranty for every period of the product’s life cycle. Numerical example is presented considering different values of model parameters. Further, sensitivity analysis is performed to study the impact of model parameters on the profit model. The results of the paper will be greatly useful for the decision-makers, as it allows them to identify the role of the selected parameters during the entire life cycle of the product, and to study the long-term policy of a newly launched product.

Copyright
© 2019 The Authors. Published by Atlantis Press SARL.
Open Access
This is an open access article distributed under the CC BY-NC 4.0 license (http://creativecommons.org/licenses/by-nc/4.0/).

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<Previous Article In Issue
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Journal
International Journal of Computational Intelligence Systems
Volume-Issue
12 - 2
Pages
519 - 529
Publication Date
2019/01/31
ISSN (Online)
1875-6883
ISSN (Print)
1875-6891
DOI
10.2991/ijcis.d.190401.001How to use a DOI?
Copyright
© 2019 The Authors. Published by Atlantis Press SARL.
Open Access
This is an open access article distributed under the CC BY-NC 4.0 license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - JOUR
AU  - Vijay Kumar
AU  - Biswajit Sarkar
AU  - Alok Nath Sharma
AU  - Mandeep Mittal
PY  - 2019
DA  - 2019/01/31
TI  - New Product Launching with Pricing, Free Replacement, Rework, and Warranty Policies via Genetic Algorithmic Approach
JO  - International Journal of Computational Intelligence Systems
SP  - 519
EP  - 529
VL  - 12
IS  - 2
SN  - 1875-6883
UR  - https://doi.org/10.2991/ijcis.d.190401.001
DO  - 10.2991/ijcis.d.190401.001
ID  - Kumar2019
ER  -