Question

4. Use resource allocation models and explain the relationship between resource allocation models and the product life cycle.

** I am ok with simple answer 4-5 line **

Answer 1

A resource allocation model (RAM) is a methodology for determining where resources should be allocated within an organisation. Resources may include financial resources, technological resources and human resources.

The product life cycle is a cycle showing the different stages in the life of a product, it  is broken into four stages: introduction, growth, maturity, and decline.

From the above definitions we can see that there is a close relationship between the RAM and the product life cycle. This is because the life cycle of any product will depend in the resource allocated towards it. Beginning from the first stage of introduction of a product there is a huge investment required for developing a new product( research and development) so at this stage resources must be allocated towards this. In the second stage of growth of the product more resources need to be allocated towards it because though the product has been developed but it needs to be known to its potential buyers and hence advertisement and development of the supply channel needs to be done. But after this no resource is needed in this product because as it catches market it becomes profitable and hence earns revenue. In the last stage of decline when the product becomes outdated it needs to be discontinued and new product ts to be developed.

So we can see that at every stage of the product life cycle RAM plays a great role because if proper resources are not allocated at proper time than the product life cycle will be affected.