Article-detailsAdvances in Industrial Engineering and Management
 Article-details | AIEM

2019(Volume 8)
Vol. 8, No. 1 (2019)
2018(Volume 7)
Vol. 7, No. 1 (2018)
Vol. 7, No. 2 (2018)
2017(Volume 6)
Vol. 6, No. 2 (2017)
Vol. 6, No. 1 (2017)
2016(Volume 5)
Vol. 5, No. 2 (2016)
Vol. 5, No. 1 (2016)
2015(Volume 4)
Vol. 4, No. 2 (2015)
Vol. 4, No. 1 (2015)
2014(Volume 3)
Vol.3, No.4 ( 2014 )
Vol.3, No.3 ( 2014 )
Vol.3, No.2 ( 2014 )
Vol.3, No.1 ( 2014 )
2013 ( Volume 2 )
Vol.2, No.2 ( 2013 )
Vol.2, No.1 ( 2013 )
2012 ( Volume 1 )
Vol. 1, No.1 ( 2012 )



ISSN:2222-7059 (Print);EISSN: 2222-7067 (Online)
Copyright © 2000- American Scientific Publishers. All Rights Reserved.

Title : An innovative supplier and imitative buyer in the case of product life cycle
Author(s) : Manoj Kumar
Author affiliation :
Corresponding author img Corresponding author at : Corresponding author img  

This paper attempts to examine the product cycle in supply chain collaboration. In a competitive market environment, supply chains members seek to reduce cost by using strategic collaboration. This study derives a model for a cooperated supply chain in which the supplier is innovator and the buyer is product imitator. The innovation of suppliers can contribute to the long-term competitiveness for the supply chain. For many supply chains, product innovation is a major factor in the product cycle, and it should be considered in the development of strategies for a supplier. In this paper, we evaluate the effectiveness of supplier product innovation as a strategic tool to enhance the competitiveness and viability of supply chain. This paper examines the effect of labor expansions, investments in R&D to the supplier innovation rates, buyers’ imitation rate, and the length of product cycle. This study derives an inventory replenishment model for a supply chain. A profit sharing policy is developed to coordinate the supply chain for the product upgrading and increase the profits of the buyer and supplier both. This study maximizes the total profit of the supplier by a search algorithm. In the model, both labor expansions and investments in R&D have the positive relationships with both innovation and imitation rates and shortens the product lifecycle.

Key words:Supply-chain collaboration; product life cycle, supplier product innovation, buyer imitation, profit sharing policy.

Cite it:
Manoj Kumar, An innovative supplier and imitative buyer in the case of product life cycle, Advances in Industrial Engineering and Management, Vol. 2, No. 1, pp. 16-34, 2013

Full Text : PDF(size: 595.93 kB, pp. 16-34, Download times:1274)

DOI : 10.7508/AIEM-V2-N1-16-34

[1] Birou, L. M., & Fawcett, S. E. 1994. ‘Supplier involvement in integrated product development — A comparison of US and European practices’,International Journal of Physical Distribution and Logistics Management, Vol.24 No. 5, pp.4−14.
[2] Boutellier, R., & Wagner, S. M. 2003. Sourcing concepts: Matching product architecture, task interface, supplier competence and supplier relationship, In H.Österle & R.Winter (Eds.), Business Engineering 2nd edn. Berlin: Springer, pp. 223−248.
[3] Clark, K.B., & Fujimoto, 1991 T. Product development performance: Strategy, organization, and management in the world auto industry, Boston, Massachusetts, Harvard Business School Press.
[4] Covert, R.P., & Philip, G.C, 1973. ‘An EOQ model for items with weibull distribution deterioration’, IIE Transactions, Vol.5, pp. 323 – 326.
[5] Dollar, David, (1986), Technological Innovations, Capital Mobility, and the Product Cycle in North- South Trade, American Economic Review, Vol. 76, No. 1, pp. 177-90.
[6] Fredrik, V. C., & Claes, T. 2002, ‘Coordinating customers and proactive suppliers a case study of supplier collaboration in product development’, Journal of Engineering and Technology Management, Vol. 19, pp. 249-261.
[7] Grossman, G. M., & Helpman, E., May, 1991, ‘Quality Ladders and Product Cycles’, The Quarterly Journal of Economics, Vol. 106, No. 2., pp. 557-586.
[8] Grossman, G. M., & Helpman, E., Sep. 1991, ‘Endogenous Product Cycles’, the Economic Journal, Vol. 101, No. 408. pp. 1214-1229.
[9] Grossman, G. M., Helpman, E., 1991, ‘Quality Ladders in the Theory of Growth’, The Review of Economic Studies, Vol. 58, No. 1. pp. 43-61.
[10] Henderson, R. M., & Clark, K. B. 1990. ‘Architectural innovation: The reconfiguration of existing product technologies and the failure of established firms’. Administrative Science Quarterly, Vol. 35 No.1, pp.9−30.
[11] Hoegl, M., & Wagner, S. M. 2005. ‘Buyer–supplier collaboration in product development projects’. Journal of Management, Vol. 31 No. 4, pp. 530−548.
[12] Johnson, J. L., 1999, ‘Strategic integration in industrial distribution channels: Managing the interfirm relationship as a strategic asset’. Journal of the Academy of Marketing Science, Vol. 27 No. 1, pp. 4−18.
[13] Kaufman, A., Wood, C. H., & Theyel, G. 2000, ‘Collaboration and technology linkages: a strategic supplier typology’ , Strategic Management Journal, Vol.21, pp. 649-663.
[14] Kessler, E., Chakrabatri, A., 1996. ‘Innovation speed: A conceptual model of context, antecedents, and outcome’, Academy of Management Review, Vol. 21 No.4, pp.1143–1191.
[15] Krugman, P., 1979, ‘A Model of Innovation, Technology Transfer, and the World Distribution of Income’, The Journal of Political Economy, Vol. 87, No. 2. pp. 253-266.
[16] Liker, J. K., Kamath, R. R., Wasti, S. N., & Nagamachi, M., 1996, Supplier involvement in automotive component design: Are there really large US Japan differences? Research Policy, Vol. 25 No.1, pp. 59−89.
[17] Littler, D., Leverick, F., & Bruce, M., 1995, ‘Factors affecting the process of collaborative product development: A study of UK manufacturers of information and communication technology products’, Journal of Product Innovation Management, Vol. 12 No.1, pp.3-20.
[18] Littler, D., Leverick, F., & Wilson, D., 1998, ‘Collaboration in new technology based markets’, International Journal of Technology Management, Vol. 15 No. (1/2), pp. 139−159.
[19] Mabert,V. A., Muth, J. F. & Schmenner, R. W., 1992, ‘Collapsing new product development times: Six case studies’, Journal of Product Innovation management, Vol. 9 No. 3, pp. 200-212.
[20] Milling, P. M., & Stumpfe, J. 2000, ‘Product and process innovation: a system dynamics-based analysis of their interdependencies’, Proceedings of the 18th International Conference of the System Dynamics Society, Bergen, Norway.
[21] Monczka, R. M., Handfield, R. B., Scannell, T. V., Ragatz, G. L., & Frayer, D. J. 2000, New product development: Strategies for supplier integration. Milwaukee, WI: ASQ Quality Press.
[22] Park, N., & Oduntan, O. 2010. ‘Distributed Innovation as an enabler of long term customer satisfaction and sustained competitiveness under turbulence’, Technology Innovation and Industrial Management (TIIM) Conference 2010, Bangkok, Thailand.
[23] Peterson, K. J., Handfield, R. B., & Ragatz, G. L., 2003, ‘A model of supplier integration into new product development’, Journal of Product Innovation Management, Vol. 20 No. 4, pp. 284-299.
[24] Pisano, G. P., 1997, The Development Factory: Unlocking the Potential of Process Innovation. Boston, MA: HBS Press.
[25] Primo, M. A. M., & Amundson, S. D., 2002, ‘An exploratory study of the effects of supplier relationships on new product development outcomes’. Journal of Operations Management, Vol. 20 No. 1, pp. 33−52.
[26] Ragatz, G. L., Handfield, R. B., & Petersen, K. J., 2002, ‘Benefits associated with supplier integration into new product development under conditions of technology uncertainty’. Journal of Business Research, Vol.55 No.5, pp.389–400.
[27] Raymond, V., May, 1966, ‘International Investment and International Trade in the Product Cycle’. The Quarterly Journal of Economics, Vol. 80, No. 2. pp. 190-207.
[28] Schrader, S., & Göpfert, J. R., 1997, Task partitioning among manufacturers and suppliers in new product development teams. In H. G. Gemünden, T. Ritter, & A. Walter (Eds.), Relationships and networks in international markets Oxford: Pergamon, pp. 248−268.
[29] Susman, G.I., & Ray, J.M., 1999, ‘Test of a model of organizational contributors for product development team effectiveness’. Journal of Engineering Technology Management, Vol.16, pp. 223–245.
[30] Tushman, M., & Philip A., 1986, ‘Technological Discontinuities and Organizational Environments’, Administrative Science Quarterly, Vol. 31, pp. 439-65.
[31] Ulrich, K. T., 1995, ‘The role of product architecture in the manufacturing firm’. Research Policy, Vol. 24 No. 3, pp. 419−440.
[32] VonHippel, E., 1988, the sources of innovation. Newyork, NY: Oxford University Press.
[33] VonHippel, E., 1990, ‘Task partitioning: An innovation process variable’. Research Policy, Vol. 19 No.5, pp. 407−418.
[34] Wagner, S. M., 2010, ‘Supplier traits for better customer firm innovation performance’. Industrial Marketing Management Vol. 39, pp. 1139-1149.
[35] Wagner, S. M., & Hoegl, M., 2006, ‘Involving suppliers in product development: Insights from R&D directors and project managers’. Industrial Marketing Management, Vol. 35 No.8, pp. 936−943.
[36] Walpole, R.E., & Myers, R.H. 1978, Probability and Statistics for Engineers and Scientist. New York: Macmillan.
[37] Wasti, S.N., & Liker, J.K., 1997, ‘Risky business or competitive power? Supplier involvement in Japanese product design’. Journal of Production and Innovation Management Vol. 14, pp. 337–355.
[38] Wasti, S., & Liker, J., 1999, ‘Collaborating with suppliers in product development: a U.S. and Japan comparative study’, IEEE Transactions on Engineering Management, Vol. 46 No. 4, pp. 444-46.
[39] Zirger, B.J., & Hartley, J.L., 1996, ‘The Effect of Acceleration Techniques on Product Development Time’, IEEE Transactions on Engineering Management, Vol. 43, pp. 143-152.

Terms and Conditions   Privacy Policy  Copyright©2000- 2014 American Scientific Publishers. All Rights Reserved.