Evaluating supply chain dynamics in the presence of product deletion

Manufacturers and retailers seek product portfolio expansion for strategic reasons. Diverse product portfolio breadth and depth can increase sales and build competitiveness; alternatively, extensive product portfolios may increase resource consumption, operational complexity, and reduce supply chain efficiency and agility. Products may be deleted for many organizational reasons. Few studies have evaluated how product deletion decisions influence supply chain activities and performance. Supply chain flow and supply chains are designed and managed around products and services. Product deletion decisions influence supply chain performance it is a systemic relationship that can change over time. In this study system dynamics is used to evaluate product deletion impact on four core supply chain inter-related systems. A conceptual framework is built upon causal loop and stock-flow diagrams. The framework is tested using simulations indicating how performance develops amongst supply chain systems through product deletion processes. Simulation experiments indicate that sound product deletion will improve market share, cost efficiency, product revenue and profitability. Being the first study that integrates systemic product deletion to the supply chain management domain, the proposed framework and simulation model of this study enable managers to evaluate product deletion decisions in different supply chain scenarios; and hence, rationalize product portfolio variety and manage organizational competitiveness.