Planning product design refreshes with service contract and competition considerations

International Journal of Production Economics

Volumn 126, Issue 2, 2010, Pages 189-203

  Laksana, Kamonkan ^a   Hartman, Joseph C ^b  

^a Lehigh University   (United States)

^b University of Florida   (United States)

Author keywords

Dynamic programming; Equipment replacement; New product development; Service warranty contracts; Technological change

Indexed keywords

COMPETITIVE MARKETS; CONSUMER SERVICES; DESIGN REFRESH; EQUIPMENT REPLACEMENT; HIGH RATE; INVESTMENT COSTS; MARKET CONDITION; MARKET SHARE; NEW PRODUCT DEVELOPMENT; OPTIMAL DESIGN; PRODUCT IMPROVEMENT; PRODUCT INTRODUCTION; PRODUCT PRICE; PRODUCT RELIABILITY; REPLACEMENT STRATEGY; SERVICE CONTRACT; TECHNOLOGICAL CHANGE; TECHNOLOGICAL IMPROVEMENTS; WARRANTY PERIOD;

COMMERCE; COMPETITION; CONTRACTS; DYNAMIC PROGRAMMING; GAME THEORY; MAINTENANCE; OPTIMIZATION; PRODUCT DEVELOPMENT;

PRODUCT DESIGN;

EID: 77953685706     PISSN: 09255273     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ijpe.2010.03.007     Document Type: Article

References (39)

1. Arora A., Caulkins J.P., and Telang R. Research note-sell first, fix later: impact of patching on software quality. Management Science 52 3 (2006) 465-471
2. Baker R. Risk aversion in maintenance: overmaintenance and the principal-agent problem. IMA Journal of Management Mathematics 17 (2006) 99-113
3. Bayus B.L. Speed-to-market and new product performance trade-offs. Journal of Product Innovation Management 14 (1997) 485-497
4. Bayus B.L., Jain S., and Rao A.G. Too little, too early: introduction timing and new product performance in the personal digital assistance industry. Journal of Marketing Research 34 (1997) 50-63
5. Blischke W.R., and Murthy D.N.P. Product Warranty Handbook (1995), Marcel Dekker, New York
6. Bonner J.M. Customer interactivity and new product performance: moderating effects of product newness and product embeddedness. Industrial Marketing Management 39 3 (2010) 485-492
7. Carrillo J.E. Industry clockspeed and the pace of new product development. Production and Operations Management 14 2 (2005) 125-141
8. Chun C.Y., and Tang K. Determining the optimal warranty price based on the producer's and customers' risk preferences. European Journal of Operation Research 85 (1995) 97-110
9. Cohen M.A., Eliashberg J., and Ho T.H. New product development: the performance and time-to-market tradeoff. Management Science 42 2 (1996) 173-186
10. Druehl, C.T., Schmidt, G.M., Souza, G.C., 2005. The optimal pace of product updates. Research Paper RHS-06-005, University of Maryland, USA.
11. Goyal M., and Netessine S. Strategic technology choice and capacity investment under demand uncertainty. Management Science 53 2 (2007) 192-207
12. Grenadier S.R., and Weiss A.M. Investment in technological innovations: an option pricing approach. Journal of Financial Economics 44 (1997) 397-416
13. Hartman J.C., and Laksana K. Designing and pricing menus of extended warranty contracts. Naval Research Logistics 56 (2009) 199-214
14. Hollis A. Extended warranties, adverse selection, and aftermarkets. Journal of Risk and Insurance 66 3 (1999) 321-343
15. Hussain A.Z.M.O., and Murthy D.N.P. Warranty and optimal reliability improvement through product development. Mathematical and Computer Modelling 38 (2003) 1211-1217
16. Iskandar B.P., Murthy D.N.P., and Jack N. A new repair-replace strategy for items sold with a two-dimensional warranty. Computers & Operations Research 32 (2005) 669-682
17. Jiang X., Jardine A.K.S., and Lugitigheid D. On a conjecture of optimal repair-replacement strategies for warranted products. Mathematical and Computer Modelling 44 (2006) 963-972
18. Kim H.E., and Pennings J.M. Innovation and strategic renewal in mature markets: a study of the tennis racket industry. Organization Science 20 2 (2009) 368-383
19. Klastorin T., and Tsai W. New product introduction: timing, design, and pricing. Manufacturing & Service Operations Management 6 4 (2004) 302-320
20. Knott A.M., and Posen H.E. Firm R&D behavior and evolving technology in established industries. Organization Science 20 2 (2009) 352-357
21. Krishnan V., and Ulrich K.T. Product development decisions: a review of the literature. Management Science 47 1 (2001) 1-21
22. Lutz N.A., and Padmanabhan V. Warranties, extended warranties, and product quality. International Journal of Industrial Organization 16 (1998) 463-493
23. Majeske, K.D., Herrin, G.D., 1998. Determining warranty benefits for automobile design changes. In: Proceeding Annual Reliability and Maintainability Symposium, pp. 94-99.
24. Majeske K.D., Lynch-Caris T., and Herrin G. Evaluating product and process design changes with warranty data. International Journal of Production Economics 50 (1997) 79-89
25. Millson M.R., and Wilemon D. Impact of new product development (npd) proficiency and npd entry strategies on product quality and risk. R&D Management 38 5 (2008) 491-509
26. Morgan L.O., Morgan R.M., and Moore W.L. Quality and time-to-market trade-offs when there are multiple product generations. Manufacturing & Service Operations Management 3 2 (2001) 89-104
27. Murthy D.N.P., and Asgharizadeh E. Optimal decision making in a maintenance service operation. European Journal of Operational Research 116 (1999) 259-273
28. Padmanabhan V., and Rao R.C. Warranty policy and extended service contracts: theory and an application to automobiles. Marketing Science 12 3 (1993) 230-247
29. Purohit D. What should you do when your competitors send in the clones?. Marketing Science 13 4 (1994) 392-411
30. Ritchken P.H., and Tapiero C.S. Warranty design under buyer and seller risk aversion. Naval Research Logistics Quarterly 33 (1986) 657-671
31. Rogers J.L., and Hartman J.C. Equipment replacement under continuous and discontinuous technological change. IMA Journal of Management Mathematics 16 (2005) 23-36
32. Souza G.C. Product introduction decisions in a duopoly. European Journal of Operational Research 152 (2004) 745-757
33. Souza G.C., Bayus B.L., and Wagner H.M. New-product strategy and industry clockspeed. Management Science 50 4 (2004) 537-549
34. Su C.T., Chen Y.H., and Sha D.Y.J. Managing product and customer knowledge in innovative new product development. International Journal of Technology Management 39 (2007) 105-130
35. Thomas M.U., and Richard J.P. Warranty-based method for establishing reliability improvement targets. IIE Transactions 38 (2006) 1049-1058
36. Ward H., and Christer A.H. Modelling the re-design decision for a warranted product. Reliability Engineering and System Safety 88 (2005) 181-189
37. Wilson L.O., and Norton J.A. Optimal entry timing for a product line extension. Marketing Science 8 1 (1989) 1-17
38. Yang K., and Cekecek E. Design vulnerability analysis and design improvement by using warranty data. Quality and Reliability Engineering International 20 (2004) 121-133
39. Yeh R.H., Chen M.Y., and Lin C.Y. Optimal periodic replacement policy for repairable products under free-repair warranty. European Journal of Operational Research 176 (2007) 1678-1686