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The impact of flexibility on operational supply chain planning

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  • Schütz, Peter
  • Tomasgard, Asgeir

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.

Suggested Citation

  • Schütz, Peter & Tomasgard, Asgeir, 2011. "The impact of flexibility on operational supply chain planning," International Journal of Production Economics, Elsevier, vol. 134(2), pages 300-311, December.
  • Handle: RePEc:eee:proeco:v:134:y:2011:i:2:p:300-311
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    References listed on IDEAS

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    1. 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.
    2. Kenneth R. Baker & David W. Peterson, 1979. "An Analytic Framework for Evaluating Rolling Schedules," Management Science, INFORMS, vol. 25(4), pages 341-351, April.
    3. 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.
    4. 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.
    5. Goyal, S. K. & Gunasekaran, A., 1990. "Multi-stage production-inventory systems," European Journal of Operational Research, Elsevier, vol. 46(1), pages 1-20, May.
    6. Escudero, L. F., 1994. "CMIT, capacitated multi-level implosion tool," European Journal of Operational Research, Elsevier, vol. 76(3), pages 511-528, August.
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    Cited by:

    1. repec:spr:annopr:v:244:y:2016:i:2:d:10.1007_s10479-013-1513-2 is not listed on IDEAS
    2. Ottesen, Stig Odegaard & Tomasgard, Asgeir, 2015. "A stochastic model for scheduling energy flexibility in buildings," Energy, Elsevier, vol. 88(C), pages 364-376.
    3. repec:spr:annopr:v:244:y:2016:i:2:d:10.1007_s10479-014-1544-3 is not listed on IDEAS
    4. 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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