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    Practice Problem 2 - Bass Diffusion

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    Srinivasa Raghavan
    An MIT student has invented a Chai-making machine for restaurants and offices in the US. Using the Bass diffusion model and values for p and q, the student asks the assistant to estimate how many thousands of units can be expected to sell over a decade. The assistant calculates the estimate to be 208 thousand units using the Bass model values provided.

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    Practice Problem 2 - Bass Diffusion

    Uploaded by

    Srinivasa Raghavan
    91 views2 pages
    An MIT student has invented a Chai-making machine for restaurants and offices in the US. Using the Bass diffusion model and values for p and q, the student asks the assistant to estimate how many thousands of units can be expected to sell over a decade. The assistant calculates the estimate to be 208 thousand units using the Bass model values provided.

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    bass diffusion models week 4

    Original Title

    Practice Problem 2_ Bass Diffusion

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    An MIT student has invented a Chai-making machine for restaurants and offices in the US. Using the Bass diffusion model and values for p and q, the student asks the assistant to estimate how many thousands of units can be expected to sell over a decade. The assistant calculates the estimate to be 208 thousand units using the Bass model values provided.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    91 views2 pages

    Practice Problem 2 - Bass Diffusion

    Uploaded by

    Srinivasa Raghavan
    An MIT student has invented a Chai-making machine for restaurants and offices in the US. Using the Bass diffusion model and values for p and q, the student asks the assistant to estimate how many thousands of units can be expected to sell over a decade. The assistant calculates the estimate to be 208 thousand units using the Bass model values provided.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    3/15/2016

    Practice Problem 2: Bass Diffusion | Week 4 Practice Problems | CTL.SC1x Courseware | edX

    MITx: CTL.SC1x Supply Chain Fundamentals

    Week 4: Forecasting III - Special Cases & Extensions > Week 4 Practice Problems >
    Practice Problem 2: Bass Diffusion

    Bookmarks
    Bookmark

    Course
    Overview &
    Logistics
    Entrance
    Survey
    Week 1:
    Overview of
    Supply Chain
    Management &
    Logistics

    PRACTICE PROBLEM 2: BASS DIFFUSION


    An MIT student from India has invented a Chai-making machine for use in
    restaurants and offices across the United States. Since she knows you are
    taking SC1x, she has asked for your help in projecting the adoption that
    this new appliance could have over the following decade. Her best
    estimate of the potential market for the Chai machine is a quarter of a
    million units sold. Using as reference the values of p and q for
    coffeemakers and microwaves, you have estimated that the Chai-making
    machine could have a p=0.02 and a q=0.5 with the unit of time t given in
    years.

    Week 2:
    Forecasting I Introduction

    Part 1

    Week 3:
    Forecasting II Exponential
    Smoothing

    Assuming that the machines have a long life and that each adopter only
    buys one machine, use the Bass diffusion model to estimate how many
    thousands of units can she expect to have sold by the end of a decade.
    (Give your answer in thousands: e.g. enter 50 for 50,000 units sold.)

    Week 4:

    Enter your answer here:

    Forecasting III
    - Special Cases
    & Extensions
    Welcome to Week
    4
    Lesson 1: Causal
    Analysis
    Lesson 2: New
    Product &
    Intermittent
    Demand
    Forecasting

    Answer: 208

    EXPLANATION

    Using the values of p=.02, q=.5 and M=250 (thousand), and the Bass
    diffusion model, we can calculate the number of units sold N(t) after
    10 time units (a decade). The solution is shown below.

    https://courses.edx.org/courses/course-v1:MITx+CTL.SC1x_2+1T2016/courseware/71f80ac0a02747fe9cf6fcee5dd77b63/da338c912f0d4a80a7391d82ca9952b5/

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    3/15/2016

    Practice Problem 2: Bass Diffusion | Week 4 Practice Problems | CTL.SC1x Courseware | edX

    Week 4 Practice
    Problems
    Supplemental
    Materials for
    MicroMasters
    Week 4 Graded
    Assignment
    Homework due Mar
    16, 2016 at 15:00 UTC

    Week 5:
    Inventory
    Management I
    - Deterministic
    Demand

    The solution can be downloaded here:


    - For Excel
    - For LibreOffice

    You have used 3 of 3 submissions


    All Rights Reserved

    edX Inc. All rights reserved except where noted. EdX, Open edX and the edX and Open EdX logos are registered
    trademarks or trademarks of edX Inc.

    https://courses.edx.org/courses/course-v1:MITx+CTL.SC1x_2+1T2016/courseware/71f80ac0a02747fe9cf6fcee5dd77b63/da338c912f0d4a80a7391d82ca9952b5/

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