noon - 1 p.m. Location: SLC 2.302
Naveen Jindal School of Management
The University of Texas at Dallas
Managing self-replicating innovative goods
This paper studies a unique business model pioneered by a startup company that produces self-replicating 3D printers, but also applicable to certain agricultural and biotechnological companies. The demands of innovative goods such as 3D printers are known to be characterized by the Bass diffusion model. On the other hand, the self-replication manufacturing mode presents the tradeoff of using a produced unit for either satisfying demand or increasing production capacity. Modeled as an optimal control problem, we identify two distinct classes of clean optimal strategies identified by a simple condition. We further investigate the problem under uncertainty and learning.