Flexibility evaluation of multiechelon supply chains.

Area of Science:

• Operations Research
• Supply Chain Management

Background:

• Multiechelon supply chains require tactical flexibility and coordination to manage environmental uncertainties.
• Existing mathematical models for supply chain flexibility often become complex and limited under uncertainty.

Purpose of the Study:

• To present a unified approach for evaluating the flexibility of a four-echelon supply chain.
• To develop a robust stochastic programming model that integrates plans from multiple business divisions.

Main Methods:

• Development of a robust stochastic programming model for a four-echelon supply chain.
• Simultaneous consideration of conflicting goals from marketing, logistics, manufacturing, and procurement divisions.
• Analysis using deterministic parameters followed by stochastic parameters to evaluate flexibility.

Main Results:

• Evaluation of supply, manufacturing, and distribution flexibility.
• Tradeoff analysis between demand variability and service levels.
• Demonstration of improved supply chain resilience through integrated management styles.

Conclusions:

• The proposed model offers a unified approach to assess and enhance supply chain flexibility and resilience.
• The model can be extended to analyze operational strategies during supply chain disruptions.
• Effective coordination of business divisions is crucial for managing uncertainty and improving performance.