Shorter product life cycles present new challenges to managing production and logistics not adequately addressed in supply chain literature.This research addresses issues pertaining to the management of supply chains in a short life cycle environment.In this paper,we study the short life cycle environment;then we develop the optimal inventory policy of the indirect manufacturer by explicitly using his demand as an output of the retailer’s optimal ordering policy.Finally,we also provide causes of the bullwhip effect in the context of short life cycle products. Shorter product life cycles present new challenges to managing production and logistics not adequately addressed in supply chain literature. This research addresses issues pertaining to the management of supply chains in a short life cycle environment. In this paper, we study the short life cycle environment; then we develop the optimal inventory policy of the indirect manufacturer by explicitly using his demand as an output of the retailer’s optimal ordering policy. Finally, we also provide causes of the bullwhip effect in the context of short life cycle products.