This information is part of the Business Simulation Library (BSL).
In this final extension of the introductory model
SimpleProductionChain we now replace the
Ramp component for the first-time purchases with a model of new product diffusion.
We are assuming that there are 10 initial customers and a stock of 250'000 potential customers that will be turned into customers by "word-of-mouth" only—for now we will assume that there is no growth or decline with regard to this potential. There is a constant
contactRate of 10 people per month and the
adoptionFraction is assumed to be 2%.
Description: Finished goods inventory
Description: Shipments to the customers
Description: Production of a durable good
Description: Products in use
Description: Discarding of products (which will be replaced by new ones)
Description: Potential customers
Description: Bass diffusion model for a word-of-mouth process
Description: Initial customers (early adopters)