Supply chain coordination in the new product launch

Juntao Li and Feng Yang

Journal of the Operational Research Society, 2025, vol. 76, issue 2, 328-341

Abstract: In some industries, product components provided by key suppliers have a great impact on the performance of downstream manufacturers’ products. Therefore, downstream manufacturers should plan the launch times of their new products according to the technology upgrading routes of upstream suppliers. We consider a supply chain consisting of a supplier and a manufacturer. They introduce new products at regular intervals. First, the supplier decides its product launch cycle. Then, the manufacturer chooses to launch one new product (denoted as the single flagship strategy) or two new products at the staggered time (denoted as the staggered double flagship strategy) in the supplier’s product cycle. We find that the profit of the supplier is higher when the manufacturer adopts the staggered double flagship strategy. However, the profit of the manufacturer adopting the single flagship strategy is higher when the R&D cost of the manufacturer is high. The supplier can induce the manufacturer to adopt the staggered double flagship strategy by providing compensation. We show that as the manufacturer’s R&D cost increases, the supplier should prioritise extending the product cycle until the supply chain is coordinated, after which it continues to compensate the manufacturer through revenue sharing until the compensation becomes ineffective.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/01605682.2024.2352457 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:tjorxx:v:76:y:2025:i:2:p:328-341

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/tjor20

DOI: 10.1080/01605682.2024.2352457

Access Statistics for this article

Journal of the Operational Research Society is currently edited by Tom Archibald

More articles in Journal of the Operational Research Society from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().