Product R&D, process R&D and market dynamics: a simulation study

Abstract

This paper presents a simulation study carried out for the investigation of the dynamics of the combined development-production-selling system of a firm. Different product line management strategies were evaluated with respect to its operational results for a specified time interval. It was found that strategies that balance the intensity and timing of the development projects with the products' life-cycles characteristics result in superior performance compared to strategies that focus on development efforts or life cycles only.