Pan Africa Skills
My Account Notes Notes

Supply Chain Fundamentals

Table of contents Expand All Collapse All

Module 1: Understand the concept of a supply chain



Product Life Cycles (PLC)

All products have a life cycle, typically, of four stages;

  1. Introductory;
  2. Growth;
  3. Maturity;
  4. Decline.

The introductory stage sees the product have a potentially low demand and little variety.

In the growth stage there is an increase in volume which requires the supply chain to be well organised and structured in order meet demands. Adequate stocks are normally held in order to meet growing demands.

The maturity stage sees a decrease in market growth with an increase in variety of the products as a response and as such there is a requirement for the supply chain to be adjusted in line with these characteristics.

The decline stage sees, with the increase in variety and market segments, the supply chain focusing on the reverse life cycle whilst trying to contain costs.