Beyond Retail Stores: Managing Product Proliferation along the Supply Chain

Product proliferation occurs in supply chains when manufacturers respond to diverse market needs by trying produce a range of products from limited variety raw materials. In such setting, delaying the point helps improve their responsiveness postponing ordering decisions final until there is partial or full resolution demand uncertainty. This strategy can be implemented two different ways: (i) redesigning operations so that swapped with downstream operation (ii) reducing lead times. To establish cost efficiency, systematically reduce operational costs postpone high-cost operations. We consider multi-echelon and multi-product newsvendor problem forecast evolution analyze value each lever efficiency. use generalized forecast-evolution model characterize updating process, develop dynamic optimization determine optimal order quantities at echelons. demonstrate time more beneficial than an upstream same amount, whereas favorable costs. also indicate may cause loss profit, even if it achieved no additional Finally, decision typology developed, which shows effective strategies depending on product/market characteristics process flexibility.