Product Portfolio and Investment Policy - Finance
Application area: Product management
Simulation method: Agent Based, System Dynamics
Product Portfolio and Investment Policy
A company develops and sells consumer products with fairly short lifecycle. After the product has been successfully launched, its revenue peaks, and then goes down as shown in the Figure. To keep the business going the company has to maintain a continuous process of new product research and development. A part of the company revenue is therefore reinvested into R&D, and another significant part is spent on introduction of new products. We are investigating how the investment policy affects the business.
The model was created with AnyLogic - simulation software / Product management
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