:Planning a supply chain for a new product requires addressing demand and cost uncertainty as well as changes in market conditions over time. We developed an approach to supply chain planning to determine production capacities, distribution locations, and material flows for a new product launch. The model finds an overall solution for all identified potential scenarios of demand growth. This model also addresses the financial viability of the company during a new product launch by considering initial investments and cash flow. We demonstrate this approach with a case study of a Fortune 200 company's experience launching a new product line.
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Butler et al. (2006) studied this question.
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