Research On Price Discounts For Short Lifecycle Products

Because of the unique technology expansion process, high-tech products usually have the special lifecycle curve. Compare with the common technical products, lifecycle high-tech products are shorter and represent as a'S'figure, the autumn period are very short and usually no wane. With the exception of high-tech products, the other seasonal products such as clothes, festival foods and even entertainments all represent that the products lifecycle become shorter and shorter. So the research of how to price the short lifecycle products becomes important.This thesis first advances a model to price the short lifecycle products. Deterioration lead to the change of amount may happen to short lifecycle products (we can call it physical deterioration), but the more are because of the appearance of new products and new periods lead to the change of short lifecycle products'price (we can call it immaterial deterioration). In thesis, we only discussed the changes of price caused by immaterial deterioration. The product lifecycle could be divided into a few of sections averagely for a discrete price schedule, in each section the total value of sold products are suppose as the same. So it confirms the time when discount and the price how discount. The retailers adopt temporary price discounts for customers and temporary price discounts will influence the demand were considered and analyzed in the perspective of customers. And at last it discusses three inventory models for short lifecycle items with time linear demand and constant production. It finds out the optimum model of average total cost by comparing the three models in the same parameters to help the manufacturer chooses the appropriate inventory model on the basis of their own conditions and proves the conclusion by numerical example.