P-Model of inventory optimisation for high technology multi-generation products under limited warehouse storage space

Abstract

This research work puts forward the inventory optimisation model for the high technology multi-generation products under the situation of limited warehouse storage space. It is assumed that the manufacturer has its own space which has a lesser opportunity cost of usage as compared to another rented space. Therefore, the manufacturer utilises the own storage space for the period of time where his own space is sufficient to keep the inventories. While the research work has been done earlier on various demand patterns under such a scenario, there is no research present under storage space constraints for the generations of innovative products whose demand follows the Norton Bass Model of Innovation Diffusion. This paper lays down such a model for inventory optimisation, but also puts forward a few theorems on the dynamics of inventory decisions, and also performs numerical illustrations of the proposed model.