A framework for managing supply-chain flexibility using a neural network

The objective of this study is developing a method for measuring supply chain flexibility. It was considered to overcome the drawbacks of previous measures, including the use of after-the-fact measures. Three unilateral measures were suggested for each company: time flexibility, quantity flexibility and cash-flow flexibility. Then, supply chain flexibility was expressed as a weighted sum of the three unilateral measures. Neural network theory was used to find the weighting among three unilateral measures and the profit-to-revenue ratios for all companies in the supply chain, and the resulting weights were used to develop a single measure of supply chain flexibility.