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The impact of flexibility on operational supply chain planning

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  • Schütz, Peter
  • Tomasgard, Asgeir
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    Abstract

    We study in this paper the effects of volume flexibility, delivery flexibility and operational decision flexibility in operational supply chain planning under uncertain demand. We use a rolling schedule to plan supply chain operations for a whole year. The planning horizon is 4 weeks with deterministic demand in the first week and predicted for the following 3 weeks. Using a case from the Norwegian meat industry, we compare the annual operating results of using a two-stage stochastic programming model to the deterministic expected value problem in order to discuss the impact of flexibility in the supply chain.

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    File URL: http://www.sciencedirect.com/science/article/pii/S092552730900406X
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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 134 (2011)
    Issue (Month): 2 (December)
    Pages: 300-311

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    Handle: RePEc:eee:proeco:v:134:y:2011:i:2:p:300-311

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    Web page: http://www.elsevier.com/locate/ijpe

    Related research

    Keywords: Supply chain planning Flexibility Stochastic programming Demand forecasting;

    References

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    1. Escudero, L. F., 1994. "CMIT, capacitated multi-level implosion tool," European Journal of Operational Research, Elsevier, vol. 76(3), pages 511-528, August.
    2. Escudero, L. F. & Galindo, E. & Garcia, G. & Gomez, E. & Sabau, V., 1999. "Schumann, a modeling framework for supply chain management under uncertainty," European Journal of Operational Research, Elsevier, vol. 119(1), pages 14-34, November.
    3. Goyal, S. K. & Gunasekaran, A., 1990. "Multi-stage production-inventory systems," European Journal of Operational Research, Elsevier, vol. 46(1), pages 1-20, May.
    4. Schütz, Peter & Tomasgard, Asgeir & Ahmed, Shabbir, 2009. "Supply chain design under uncertainty using sample average approximation and dual decomposition," European Journal of Operational Research, Elsevier, vol. 199(2), pages 409-419, December.
    5. Sabri, Ehap H. & Beamon, Benita M., 2000. "A multi-objective approach to simultaneous strategic and operational planning in supply chain design," Omega, Elsevier, vol. 28(5), pages 581-598, October.
    6. Kenneth R. Baker & David W. Peterson, 1979. "An Analytic Framework for Evaluating Rolling Schedules," Management Science, INFORMS, vol. 25(4), pages 341-351, April.
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    Cited by:
    1. Klibi, Walid & Martel, Alain, 2012. "Modeling approaches for the design of resilient supply networks under disruptions," International Journal of Production Economics, Elsevier, vol. 135(2), pages 882-898.

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