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Multi-period models for analyzing the dynamics of process improvement activities

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  • Vörös, József

Abstract

Managing knowledge based resource capabilities has become very important in recent years and during a finite horizon it seems to be reasonable to develop the capabilities intensively at the beginning as one can utilize those over a longer period of time. With the help of multi-period models we check the validity of this idea and characterize the dynamics of development activities. The paper identifies the factors that shape these dynamics and from the behavior of these factors we conclude when the dynamics can be increasing or decreasing. We point out that in stable environment there is tendency for decreasing dynamics but future expectations can significantly modify this outcome. Relationships between the successful or less successful implementation of a business strategy and the dynamics of improvement activities are highlighted as well. For specific model structures explicit solutions are derived.

Suggested Citation

  • Vörös, József, 2013. "Multi-period models for analyzing the dynamics of process improvement activities," European Journal of Operational Research, Elsevier, vol. 230(3), pages 615-623.
    • Handle: RePEc:eee:ejores:v:230:y:2013:i:3:p:615-623
    DOI: 10.1016/j.ejor.2013.04.036
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    Cited by:

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    3. Chenavaz, Régis Y. & Feichtinger, Gustav & Hartl, Richard F. & Kort, Peter M., 2020. "Modeling the impact of product quality on dynamic pricing and advertising policies," European Journal of Operational Research, Elsevier, vol. 284(3), pages 990-1001.
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    5. Voros, Jozsef, 2019. "An analysis of the dynamic price-quality relationship," European Journal of Operational Research, Elsevier, vol. 277(3), pages 1037-1045.
    6. Li, Bo & Arreola-Risa, Antonio, 2017. "Financial risk, inventory decision and process improvement for a firm with random capacity," European Journal of Operational Research, Elsevier, vol. 260(1), pages 183-194.
    7. Song, Jian & Chutani, Anshuman & Dolgui, Alexandre & Liang, Liang, 2021. "Dynamic innovation and pricing decisions in a supply-Chain," Omega, Elsevier, vol. 103(C).
    8. Balázs Szabó & Sándor Danka, 2022. "State aid and the learning‐by‐doing effect on product pricing," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(1), pages 228-240, January.
    9. Anton, Ramona & Chenavaz, Régis Y. & Paraschiv, Corina, 2023. "Dynamic pricing, reference price, and price-quality relationship," Journal of Economic Dynamics and Control, Elsevier, vol. 146(C).

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