Product demand risk management model based on empirical forecasting: consumer electronics product case
by Kenji Tanaka
International Journal of Revenue Management (IJRM), Vol. 5, No. 2/3, 2011

Abstract: Producers continually need to determine how much of a particular product to produce. As market globalisation has changed their business, their demand uncertainty has become too big and too complex to manage. This study proposes a product's quantitative risk measurement and management model based on empirical sales forecasting. By introducing the concept of two time points of a product's lifecycle, two types of risks – the chance loss and the surplus loss caused by demand uncertainty – are defined. It provides a proposed volume under their risk-taking strategies even just after its release. Using a case study, this model is applied to consumer electronics device production planning and verifies how it works. This model proved to be able to provide optimised supply volume option and reduced product local risk compared with what is actually being done.

Online publication date: Mon, 23-May-2011

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Revenue Management (IJRM):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com