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Adoption of new products among social systems is largely dependent upon the promotional effort imparted. The promotional effort in the form of advertising plays a pivotal role in the diffusion of products among the social systems. It has been observed that demand of the products and moreover new products largely depends upon the different kinds of advertising effects. Also, it is experienced that demand of new products is highly dynamic. Therefore, to keep pace with the dynamic behavior of demand of new products, it becomes important to make strategy over the level of advertising expenditure. The paper describes an inventory model for new products where demand of the products varies with time under the external influence of dynamic advertising effects. The objective of the paper is to develop an optimal schedule of the inventory model for effective supply chain. To encounter with the uncertain environment, a fuzzy technique has also been used wherein few parameters have been taken as fuzzy variables.

Innovation Diffusion-Based Adoption Behavior of New Products and Its Inventory Policies