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Note: How Does Product Proliferation Affect Responsiveness?

Author

Listed:
  • Diwakar Gupta

    (Michael G. DeGroote School of Business, McMaster University, Ontario, Canada L8S 4M4)

  • Mandyam M. Srinivasan

    (College of Business Administration, University of Tennessee, Knoxville, Tennessee 37996-0562)

Abstract

In this note we consider some strategies that a manufacturing firm may use to deal with an increase in the variety of products it offers. We indicate how alternate strategies for dealing with product proliferation impact the firm's responsiveness, measured in terms of average production lead time and average work-in-process inventory. Focusing on the make-to-order environment and using queueing models, we derive conditions under which an increase in product variety can improve both individual product performance as well as system performance, thus contradicting a common belief that a greater degree of focus and greater responsiveness go hand in hand. These queueing models provide operations managers analytical tools for evaluating alternate strategies for coping with product proliferation.

Suggested Citation

  • Diwakar Gupta & Mandyam M. Srinivasan, 1998. "Note: How Does Product Proliferation Affect Responsiveness?," Management Science, INFORMS, vol. 44(7), pages 1017-1020, July.
  • Handle: RePEc:inm:ormnsc:v:44:y:1998:i:7:p:1017-1020
    DOI: 10.1287/mnsc.44.7.1017
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    Citations

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    Cited by:

    1. Xiao, Tiaojun & Xu, Tiantian, 2014. "Pricing and product line strategy in a supply chain with risk-averse players," International Journal of Production Economics, Elsevier, vol. 156(C), pages 305-315.
    2. J. Cole Smith & Churlzu Lim & Aydın Alptekinoğlu, 2009. "New product introduction against a predator: A bilevel mixed‐integer programming approach," Naval Research Logistics (NRL), John Wiley & Sons, vol. 56(8), pages 714-729, December.
    3. Huang, Shui-Mu & Su, Jack C.P., 2013. "Impact of product proliferation on the reverse supply chain," Omega, Elsevier, vol. 41(3), pages 626-639.
    4. Himawan Hatmanto & Agung Yuniarinto & Surachman, 2022. "The influence of resource flexibility and product complexity on operational performance moderated by employee competence in Indonesian defense industry," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(3), pages 33-43, April.
    5. Thonemann, Ulrich W. & Bradley, James R., 2002. "The effect of product variety on supply-chain performance," European Journal of Operational Research, Elsevier, vol. 143(3), pages 548-569, December.
    6. Ayd{i}n Alptekinou{g}lu & Charles J. Corbett, 2008. "Mass Customization vs. Mass Production: Variety and Price Competition," Manufacturing & Service Operations Management, INFORMS, vol. 10(2), pages 204-217, August.
    7. Menezes, Mozart B.C. & Jalali, Hamed & Lamas, Alejandro, 2021. "One too many: Product proliferation and the financial performance in manufacturing," International Journal of Production Economics, Elsevier, vol. 242(C).

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