Investing in product development and production capabilities: The crucial linkage between time-to-market and ramp-up time

Janice E. Carrillo, Richard M. Franza

Research output: Contribution to journalArticle

89 Citations (Scopus)

Abstract

Shorter product life cycles, more rapid product obsolescence, and the increasing intensity of global competition have driven firms to strive for a more rapid introduction of new products to market. We introduce a normative model which yields insights concerning several key new product development (NPD) decisions. First, we examine investment strategies related to the timing and duration for investments in both design and process capacity over a given planning horizon. Second, the model offers guidance regarding the optimal time-to-market and ramp-up time necessary to meet peak demand for the new product. The model thus provides both theoretical and managerial insights into the crucial linkage between time-to-market and ramp-up time decisions. Finally, the implications of several specific NPD investment mechanisms on these NPD metrics are explored.

Original languageEnglish (US)
Pages (from-to)536-556
Number of pages21
JournalEuropean Journal of Operational Research
Volume171
Issue number2
DOIs
StatePublished - Jun 1 2006

Fingerprint

Product Development
New Product Development
Product development
Linkage
Obsolescence
Life cycle
Life Cycle
Guidance
Planning
Horizon
Timing
Model
Metric
Necessary
Market
New product development
Investing
Time to market
New products

Keywords

  • Knowledge management
  • Manufacturing
  • Marketing
  • New product development
  • Optimal control

ASJC Scopus subject areas

  • Computer Science(all)
  • Modeling and Simulation
  • Management Science and Operations Research
  • Information Systems and Management

Cite this

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