Makers of heavy-duty diesel engines (HDDEs) need to reduce their inventory of old-generation products in preparation for the demand for next-generation products that satisfy new emission regulations. In this paper, a new demand forecasting model is proposed to reflect special conditions raised by the technological generational shift owing to new emission regulation enforcement. In addition, sensitivity analyses are conducted to better accommodate uncertainty involved at the time of prediction. Our proposed model can help support manufacturers' production and sales management for a series of products in response to new emission regulations.
Bibliographical noteFunding Information:
This work was supported by the National Research Foundation of Korea (NRF) grant funded by the Korea government (MSIP) (2016R1A2A1A05005270). This paper is a revised and expanded version of a paper entitled "Demand Forecasting of Heavy Duty Diesel Engine Technology Considering Emission Regulations" presented at the European Operations Management Association (EurOMA), Neuchatel, Switzerland, 26 June-1 July 2015.
All Science Journal Classification (ASJC) codes
- Geography, Planning and Development
- Renewable Energy, Sustainability and the Environment
- Management, Monitoring, Policy and Law