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Indiana University Bloomington

Operations & Decision Technologies

Kelley Advantage

Our Operations, Analytics and Information Systems faculty have written many of the definitive textbooks in the areas of operations, data analysis, database management, networking, and Excel modeling.

Recent Publications

Journal Articles

Managing Product Rollovers

2010, Decision Sciences

Eylem Koca, Gilvan C. Souza, Cheryl Druehl

Abstract

We study the product rollover strategy decision, where a firm decides whether to phase out an old generation of a product to be replaced by a new with either a dual or single roll. Our model considers a final build of the old product and preannouncement of the new, and incorporates dynamic pricing and inventory decisions. We find that the optimal price path closely follows changes in reservation price curves for the two products over time. We also identify the drivers of the rollover strategy decision, finding that lower market risk (faster diffusion, higher market responsiveness to preannouncements) and higher performance improvement for the new generation are associated with the single roll strategy.

Citation

Koca, Eylem, Gilvan C. Souza, and Cheryl Druehl (2010), “Managing Product Rollovers,” Decision Sciences, Vol. 41, No. 2, pp. 403-423.