| dc.description.abstract | The character of high tech product is that short life cycle and fast turn over rate, more over, the value of product decease dramatically at the end of life near the end of product life cycle. As a result, how to manage product life cycle really play a big role in the highly competitive market. In order to be in the leading position in the market, company need to set the strategy to reflect market trend and product development. The motivation of this research paper is to evaluate how an example company could satisfy customer need in below four prospects, the best inventory management, shorten lead time, on time delivery and lowest inventory cost. Only by meeting above needs could distinguish the company in the industry. Since the inventory management is so important so that his paper is initiated by how the example company could make the best inventory management base on company existing logistic, make the purchase order strategy and best turn over rate for each variable product so that the total inventory cost would be minimum, to improve the customer service level and alleviate the capital intensity pressure. All these measures would help the case company to be in the world rank in its GaAs industry.
In fact, all previous research only dedicate to how marketing and organize product life cycle, but only few papers dedicate to forecast of product life cycle. None of previous paper look into problem of company manage inventory when facing different life cycle and make efficient inventory management.
This research would use the single-period model as known as newsvendor model issue to discuss under scenario of limited product life cycle, how company to do inventory management to meet customer service level. Due to character of easily perishable and two-stage inventory, manufacturer would like to have one single finished product or have to processing product mode. Under itsown demand probability, company would make the best purchase and inventory strategy to achieve lowest cost. This paper would discuss two mode：scenario one is the product life cycle is one term and remaining inventory could not be processed again. The other one is product life cycle is one term and remaining inventory could be processed. The paper would analyze and compare the real data with single-period model of the same service level.
In the last part of paper, I would compare correlation of each service level,inventory level and total cost in the each mode. | en_US |