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Integrating effective flexibility measures into a strategic supply chain planning model

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  • Das, Kanchan

Abstract

This paper develops models for capacity, product mix, distribution and input supply flexibility and integrates them in a strategic level, mixed integer supply chain (SC) planning model as a way of addressing demand and supply uncertainty, as well as improving market responsiveness. Capacity flexibility is modeled via the SC's production capacity planning to address budgeted demand and ensure the fulfillment of prospective demand increases when considering various market scenarios. This model selects an optimal number of products from fast moving and extended product range options--based on the product mix flexibility. The model confirms a quick response to a changing marketplace by considering elements like transportation and supply lead time along with the probabilities of stock out options when addressing input supply and distribution flexibility. This paper proposes a solution procedure to solve the model for real world problems, and investigates the sensitivity of the model outputs with respect to changes in flexibility measures.

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  • Das, Kanchan, 2011. "Integrating effective flexibility measures into a strategic supply chain planning model," European Journal of Operational Research, Elsevier, vol. 211(1), pages 170-183, May.
    • Handle: RePEc:eee:ejores:v:211:y:2011:i:1:p:170-183
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    5. Sricharan Chirra & Dinesh Kumar, 2018. "Evaluation of Supply Chain Flexibility in Automobile Industry with Fuzzy DEMATEL Approach," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 19(4), pages 305-319, December.
    6. Jon M. Stauffer & Manoj Vanajakumari & Subodha Kumar & Theresa Mangapora, 2022. "Achieving equitable food security: How can food bank mobile pantries fill this humanitarian need," Production and Operations Management, Production and Operations Management Society, vol. 31(4), pages 1802-1821, April.
    7. Masoud Esmaeilikia & Behnam Fahimnia & Joeseph Sarkis & Kannan Govindan & Arun Kumar & John Mo, 2016. "A tactical supply chain planning model with multiple flexibility options: an empirical evaluation," Annals of Operations Research, Springer, vol. 244(2), pages 429-454, September.
    8. Magaly Gaviria-Marin & Jorge Matute-Vallejo & Hugo Baier-Fuentes, 2021. "The effect of ICT and higher-order capabilities on the performance of Ibero-American SMEs," Computational and Mathematical Organization Theory, Springer, vol. 27(4), pages 414-450, December.
    9. Marta Pérez-Pérez & Canan Kocabasoglu-Hillmer & Ana María Serrano-Bedia & María Concepción López-Fernández, 2019. "Manufacturing and Supply Chain Flexibility: Building an Integrative Conceptual Model Through Systematic Literature Review and Bibliometric Analysis," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(1), pages 1-23, December.
    10. Masoud Esmaeilikia & Behnam Fahimnia & Joeseph Sarkis & Kannan Govindan & Arun Kumar & John Mo, 2016. "Tactical supply chain planning models with inherent flexibility: definition and review," Annals of Operations Research, Springer, vol. 244(2), pages 407-427, September.
    11. Ivanov, Dmitry & Pavlov, Alexander & Sokolov, Boris, 2014. "Optimal distribution (re)planning in a centralized multi-stage supply network under conditions of the ripple effect and structure dynamics," European Journal of Operational Research, Elsevier, vol. 237(2), pages 758-770.
    12. Linda Zhang & Carman Lee & Shuzhu Zhang, 2016. "An integrated model for strategic supply chain design: Formulation and ABC-based solution approach," Post-Print hal-01744868, HAL.
    13. Jorge L. GARCIA-ALCARAZ & Aide A. MALDONADO-MACIAS & Juan L. HERNANDEZ-ARELLANO & Julio BLANCO-FERNANDEZ & Emilio JIMENEZ-MACIAS & Juan C. SAENZ-DIEZ MURO, 2017. "The impact of human resources on the agility, flexibility and performance of wine supply chains," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(4), pages 175-184.
    14. Eva Tomášková & Lucie Kaòovská, 2022. "Impact of cooperation flexibility on innovation flexibility in SMEs," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(2), pages 533-566, June.
    15. Moon, Karen Ka-Leung & Yi, Candace Ying & Ngai, E.W.T., 2012. "An instrument for measuring supply chain flexibility for the textile and clothing companies," European Journal of Operational Research, Elsevier, vol. 222(2), pages 191-203.
    16. Seebacher, Gottfried & Winkler, Herwig, 2015. "A capability approach to evaluate supply chain flexibility," International Journal of Production Economics, Elsevier, vol. 167(C), pages 177-186.
    17. Ivanov, Dmitry & Sokolov, Boris, 2013. "Control and system-theoretic identification of the supply chain dynamics domain for planning, analysis and adaptation of performance under uncertainty," European Journal of Operational Research, Elsevier, vol. 224(2), pages 313-323.
    18. Ghosh, Suvankar & Troutt, Marvin D., 2012. "Complex compound option models – Can practitioners truly operationalize them?," European Journal of Operational Research, Elsevier, vol. 222(3), pages 542-552.
    19. Mohamed Mahjoub Dhiaf & Abdellatif Benabdelhafid & Fakher Jaoua, 2012. "Supply Chain Flexibility And Balanced Scorecard: Conceptual Model And Empirical Study In Tunisian Companies Launched Upgrading Program," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 5(1), pages 34-59, June.

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