The strategic role of product line length flexibility in advancing supply chain resilience

Purpose The normal production process of companies may be disrupted due to the failure of timely delivery of raw materials, many companies adopt localized procurement strategies and invest in product line flexibility. This paper investigates the influence of supply disruption on product line design and the effect of product line length flexibility on the improvement of supply chain resilience. Design/methodology/approach A game-theoretical stylized model is developed and used to study a supply chain consisting of one manufacturer, one retailer, two raw material suppliers. Findings The study finds that an increase in the degree of supply disruption can drive manufacturers to extend their product line to some extent. Meanwhile, when the cost of product line extension is in the middle range, the manufacturer suffering from supply disruption should adopt a more active product line extension strategy than the manufacturer without supply disruption. In addition, the flexibility of product line length can effectively improve the resilience of the supply chain. Research limitations/implications The upstream competition or downstream competition of the supply chain may affect the relevant results. In addition, the manufacturer can adjust their R&D and production investment to change product quality in reality. Social implications Product line length flexibility can improve the resilience of the supply chain and reduce the impact of supply disruption on the profits of the manufacturer and the retailer. Originality/value This study fills the research gap on the performance of product line design in terms of supply chain resilience and provides meaningful managerial insights.