Model for flexibility evaluation in manufacturing network strategic planning

Abstract

In response to market pressures, manufacturers have adopted different approaches to provide flexibility regarding several aspects. In this paper, we suggest a model for the evaluation of the flexibility of the manufacturing supply chain, based on graph theory techniques. This model defines maximum excess demand that may be met using flexibility. Recourse to flexibility enablers is determined based on cost minimisation. Such enablers are volume flexibility, mix flexibility and safety stocks. The proposed model is solved using a two-step Mix Integer Linear Programme; the first step consists in defining maximum demand that may be met while the second step concerns minimising cost. The main benefit of our model is to deal with realistic problems in a rather short time. Therefore, it can be used in a wide ‘what-if’ design process. It means evaluating various contemplated flexibility configurations in multiple demand scenarios in order to choose the best option. It can be also used during operational supply chain planning in order to face to an unbalanced situation. This paper ends with a numerical example illustrating our model’s efficiency.

Keywords:

• manufacturing flexibility
• flexibility evaluation
• strategic planning
• mixed-integer programming
• graph theory

Notes

Paper selected during the conference CIGI 2011.