Sequential innovation, where a new product is developed to replace an existing product, creates several logistical challenges for innovating firms. We consider a firm that has to make the end-of-life inventory decision (or final build) for an existing product before identifying key performance...

Science and technology advances drive firms to continually enhance their product’s performance and launch sequentially improving offerings. Firms face challenges in marketing such improving products to well informed, forward-looking consumers who anticipate product improvements and seek to...