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Analysis of Production Capacity and Sampling of Primary and Contingent Products

  • Tingting Qu
  • Yujie Zhong
  • Zhineng Hu
Conference paper
Part of the Lecture Notes in Electrical Engineering book series (LNEE, volume 185)

Abstract

This paper establishes a model group of diffusion process of primary and contingent products, and explores the impact of free samples on diffusion process considering repeat purchase, multiple-unit purchase and various pricing strategies under supply restrictions. The paper shows that a proper production capacity to meet the market can be determined by balancing the production capacity and cost. When the production capacity is big enough, there is no need to set up the preparatory period to produce products. When the production capacity is too small to meet the demand, there is no need to sampling; only when the production capacity reaches a certain extent, the sampling level keeps in a stable level.

Keywords

Primary product Contingent product Product sampling Production capacity Price strategy 

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Notes

Acknowledgments

This research is supported by National Natural Science Foundation of China (Grant No. 70971091).

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Copyright information

© Springer-Verlag London 2013

Authors and Affiliations

  1. 1.Uncertainty Decision-Making LaboratorySichuan UniversityChengduPeople’s Republic of China

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