A TACTICAL MODEL FOR AIRING NEW SEASONAL PRODUCTS

This paper introduces a model that analyzes the impact of the length o f time spent presenting new seasonal products. Specifically, we develo p a simple stochastic model for determining the optimal airing time fo r each product so that the net profit is maximized. We consider cases in which there are two products to present, two channels to select for airing the products, and two methods of presentation to choose. In ea ch case, we formulate the problem as a mathematical program and charac terize the properties of the optimal airing time. These properties may provide managerial insights for determining airing time for each prod uct, selecting channels to air the products, and choosing presentation method for products. In addition, this analysis may help the manageme nt to make strategic decisions in airing products that would lead to a n increase in sales.