Further extending the first example to explain new product diffusion
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%.
Tutorial.StrategicBusinessSimulation, SimpleProductionChain, SimpleProductionChainII, Diffusion
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)
AmountRatefor reported flows in v2.0.0.