New product introduction planning using a 0–1 semi-infinite programming model

Abstract

A quantitative approach to screen products to the market was proposed. Product life cycles describe the whole process from new products introduction through trial production to the point when it is phased out. In theory, product life cycles go though four stages including introduction, growth, maturity and decline. However, there are very few practical products following such a prescriptive cycle. Based on product family analysis, the characteristics of new products can be classed into four categories with respective benefit curves and parameters. The curve parameters of each type can be determined according to the data derived from market prediction. A 0–1 semi-infinite programming (0–1 SIP) model was presented to describe the problem of new products introduction. An inexact approach to 0–1 semi-infinite programming was recommended for the model solution. Examples with numerical results indicate the potential industrial applications of the proposed approach.