Constructing a business cycle model for seasonal products
Journal Title: International Journal of Contemporary Management - Year 2012, Vol 11, Issue 1
Abstract
The short life-cycle products require an original method to be produced and sold. It was developed following theoretical studies complemented by long-term empirical research on manufacturing companies. In the first stage, the graphic method was applied to construct a business cycle model for seasonal products that served to design an original production management method. The model consists of four subprocesses: product creation, production setup up, manufacturing and sale. As shown by the empirical research, the subprocesses are cyclical and shifted against each other by constant time intervals. For each of the subprocesses the optimal start and end times were found. According to the model, the duration of each subprocess is determined (for instance by changing seasons in the case of clothes and footwear), a crucial factor in managing the production of the examined group of products. It has been also found that when the date for completing the manufacturing of seasonal products and starting their sale is behind schedule, the sale subprocess must be shorter, or even given up in the worst-case scenario. This finding underlies the research results. The constructed model may be significant for business practice.
Authors and Affiliations
Ewa Grandys
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