Forecasting, Production and Inventory Management of Short Life-Cycle Products : A Review of the Literature and Case Studies

The evolution of consumer behaviour (a dual demand of a large variety and personalised products) has encouraged firms to enlarge their product range. As a result, certain products have a very short life cycle (a few weeks to a few months). The supply chain for these products cannot be exactly the same as for mass-market products. In this article, we propose a literature review specific to short-life-cycle products’ supply chain. We cover the three following fields: demand forecasting, inventory management, and production management. We also present the results of two studies that we have conducted : the first deals with demand forecasting for CDs and the second deals with the printing policy for an annual guide. The absence of sales history in the case of short life-cycle products does not allow the use of classical models for calculating forecasts. Specific models are then used : the Gompertz model and the logistical model. For inventory management, two policies can be considered : a single supply or two. The results of the study conducted on the policy of edition of an annual guide showed that the total cost of the second policy is lower. The production management of short life-cycle products can be based on the following triptych : modular design, delayed differentiation and flexibility