Article ID: | iaor20119088 |
Volume: | 134 |
Issue: | 2 |
Start Page Number: | 300 |
End Page Number: | 311 |
Publication Date: | Dec 2011 |
Journal: | International Journal of Production Economics |
Authors: | Tomasgard Asgeir, Schtz Peter |
Keywords: | planning, programming: probabilistic, demand |
We study in this paper the effects of volume flexibility, delivery flexibility and operational decision flexibility in operational supply chain planning under uncertain demand. We use a rolling schedule to plan supply chain operations for a whole year. The planning horizon is 4 weeks with deterministic demand in the first week and predicted for the following 3 weeks. Using a case from the Norwegian meat industry, we compare the annual operating results of using a two‐stage stochastic programming model to the deterministic expected value problem in order to discuss the impact of flexibility in the supply chain.