Framework for flexibility in dynamic supply chain management

Effective Supply Chain Management (SCM) is a pivotal issue in the dynamically changing business environment. Dynamic SCM requires integrated decision-making amongst autonomous chain partners with effective decision information synchronization amongst them. By exploiting flexibility in supply chain structures, better performance can be achieved. Similarly, by judiciously employing decision flexibility and the associated dynamic control amongst autonomous supply chain nodes, many improvements are possible. The paper presents a study on the role of different flexibility options (i.e. no flexibility, partial flexibility and full flexibility) in a dynamic supply chain model based on some key parameters and performance measures. Supply chain flexibility has significant potential and needs a greater research attention. The paper attempts to advance the knowledge of dynamic control on effective flexibility exploitation in the context of dynamic supply chains. A simulation model of a dynamic supply chain is used for this purpose.