Conceptualization of factors influencing new product introduction within shorter product life cycle

Abstract

Rapid innovation of products by manufacturers reduces the life cycle of the current product due to frequent introduction of new version of product to the market. Manufacturers dealing with these innovative products face problems to forecast the demand from customer, thus increase the cost of carrying the inventory of such products. Generally, this drawback is observed in highly demanded product, such as fashion goods and electronic devices (notebook, mobile phone). It is becoming more important for the manufacturer to adopt tools to manage their strategy in determining the suitable entry point for the new product. This paper presents a system dynamic approach for the conceptualization modeling of the factors influencing the introduction of new product within the shorter product life cycle. The conceptual diagram visualizes the relationships across the factors that contribute to the new product introduction is illustrated in causal loop diagram.