Vertical Flexibility in Supply Chains

نویسندگان

  • Wallace J. Hopp
  • Seyed M. R. Iravani
  • Wendy Lu Xu
چکیده

J and Graves (Jordan, W. C., S. C. Graves. 1995. Principles on the benefits of manufacturing process flexibility. Management Sci. 41(4) 577–594) initiated a stream of research on supply chain flexibility, which was furthered by Graves and Tomlin (Graves, S. C., B. T. Tomlin. 2003. Process flexibility in supply chains. Management Sci. 49(7) 907–919), that examined various structures for achieving horizontal flexibility within a single level of a supply chain. In this paper, we extend the theory of supply chain flexibility by considering placement of vertical flexibility across multiple stages in a supply chain. Specifically, we consider two types of flexibility— logistics flexibility and process flexibility—and examine how demand, production, and supply variability at a single stage impacts the best stage in the supply chain for each type of flexibility. Under the assumptions that margins are the same regardless of flexibility location, capacity investment costs are the same within and across stages, and flexibility is limited to a single stage of logistics (process) flexibility accompanied with necessary process (logistics) flexibility, we show that both types of flexibility are most effective when positioned directly at the source of variability. However, although expected profit increases as logistics flexibility is positioned closer to the source of variability (i.e., downstream for demand variability and upstream for supply variability), locating process flexibility anywhere except at the stage with variability leads to the same decrease in expected profit.

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Research Note Vertical Flexibility in Supply Chains

Jordan and Graves (1995) initiated a stream of research on supply chain flexibility, which was furthered by Graves and Tomlin (2003), that examined various structures for achieving horizontal flexibility within a single level of a supply chain. In this note, we extend the theory of supply chain flexibility by considering placement of vertical flexibility across multiple stages in a supply chain...

متن کامل

Dynamic configuration and collaborative scheduling in supply chains based on scalable multi-agent architecture

Due to diversified and frequently changing demands from customers, technological advances and global competition, manufacturers rely on collaboration with their business partners to share costs, risks and expertise. How to take advantage of advancement of technologies to effectively support operations and create competitive advantage is critical for manufacturers to survive. To respond to these...

متن کامل

Identification of Disruptions and Associated Resilience Strategies in Blood Supply Chain Using a New Combined Approach

INTRODUCTION: Supply chains face various disruptions from human-made to natural disasters preventing proper flow of materials and products. This problem is more important in the healthcare supply chains, especially the blood supply chains, in which human lives are at risk. Making the supply chains resilient, recently addressed by managers and researchers, can be a good way to tackle them. This ...

متن کامل

Process Flexibility in Supply Chains

Process flexibility, whereby a production facility can produce multiple products, is a critical design consideration in multiproduct supply chains facing uncertain demand. The challenge is to determine a cost-effective flexibility configuration that is able to meet the demand with high likelihood. In this paper, we present a framework for analyzing the benefits from flexibility in multistage su...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:
  • Management Science

دوره 56  شماره 

صفحات  -

تاریخ انتشار 2010