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Managing The Supply Chain With Reference To Product Lifecycle Stages Essay

Operations The Impact of the Product Lifecycle on Supply Chain Management

The management of the supply chain is an important element of operations. The supply chain configuration, including issues such as make or buy decisions, as well as type of supply chain deliveries, needs to match the products that are being supplied and may be heavily influenced by the lifecycle stage, and the type of demand and production that emerges during the different stages (Aitken et al., 2003). To consider this it is necessary first to look at the product lifecycle and then at how it may impact on the supply chain management,

The lifecycle is traditionally presented as having five stages; development, introduction, growth, maturity, and decline (Kotler and Armstrong, 2013). The development stage is the stage prior to the product being released on the market, the introduction is the time when the product reaches the market and sales start, but are slow, growth sees the pace of sales increase, and may be sub-divided into early growth and later growth, Maturity is seen when the market has reached it full potential and the peak of sales level, after this the sales levels will reduce and the market is said to be in decline. For many product manufacturers will seek to renew the product lifecycle during or just before maturity to prevent the decline being reached. It is also important to note that the length of the product lifecycle can vary...

The first consideration may be to look at the type of product that is being produced. This is important as the same product may be perceived differently during the various stages of its lifecycle production (Aitken et al., 2003). Fisher (1997) broke products and the supporting manufacturing and supply chain operations into two categories; products were either innovative or functional, manufacturing processes, and therefore the support supply chain activities may then be focusing on efficiently, or responsiveness, as the process cannot be fully optimized for both. Fisher argued innovative products would require a responsive process, whereas functional products which are associated with the mass markets would require a focus on efficiency, if the converse were true there would be a mismatch (Fisher, 1997).
This indicates that products at the beginning of a lifecycle are often innovative, they are new, and may need to be adapted or changed,…

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References

Aitken, James; Childerhouse, Paul; Towill, Denis, (2003), The impact of product life cycle on supply chain strategy, International Journal of Production Economics, 85, 127 -- 140

Fisher, M., (1997), What is the right supply chain for your product? Harvard Business Review 75, 105 -- 116

Kotler, K, Armstrong, (2013), Principles of Marketing, Pearson
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