In this study we provide an integrated framework for linking supply chain and marketing decisions for short life-cycle products. Typically decisions in the area of supply chain are made independent of marketing strategy. Supply chain decisions would involve location, capacity, production, procurement strategy etc. Marketing decisions would involve pricing and advertising strategy to be followed during life-cycle of product.
Some of the Supply chain design related decision would have to be made before the product is launched, time at which there is lot of uncertainty regarding the likely demand of new product. However some of the supply chain decisions can be postponed at later stage, when demand becomes more certain. There is enough evidence in literature that observation of demand during early part of life-cycle helps decision maker in coming up with reasonably accurate demand forecast. The integrated problem has been modeled as two-stage problem.  During the first stage uncertainty is captured by scenario analysis and the whole problem is modeled using stochastic programming with recourse. The demand during life-cycle has been modeled using Bass diffusion model and impact of marketing strategy on demand has been captured using models developed in product diffusion field from marketing literature.

Janat Shah is an Associate Professor in the area of Production and Operations Management at Indian Institute of Management Bangalore. He is a graduate in mechanical engineering from the Indian Institute of Technology, Mumbai and has obtained the Fellow of management (Doctorate) from the Indian Institute of Management, Ahmedabad. He is currently Chairperson of the MBA programme at IIM Bangalore. He has taught a number of courses in Operations Management and Supply Chain Management to MBA students and executives. He has also consulted and taught at a number of companies.   His areas of research interests are in the field of Supply Chain design, Supply Chain Benchmarking and Manufacturing Strategy.