Flexibility measure analysis of supply chain

Abstract

This paper is intended to explore a new method of measuring supply chain flexibility from two dimensions (resources and time) when the supply chain is coordinated. Under the assumptions that the node enterprises’ marginal costs increase with their outputs, firstly this paper analyses the coordination problem of a supply chain with buyback contract, then formulates the resource allocation with the entropy concept in the case of supply chain coordination, puts forward the concepts of resource output elasticity and time output elasticity, analyses the resources’ dynamic matching problem from the two dimensions of resource and time in order to respond to the change of market demand. Finally, based on the above discussion, this paper proposes a method of measuring supply chain flexibility by integrating the resource flexibility and time flexibility. The method not only considers the resources and time required to respond the market’s change, but also takes into account the coordination relationship between the node enterprises.

Keywords:

• flexibility
• supply chain
• resource
• match
• entropy
• elasticity

Additional information

Funding

Funding. This work was supported by National Natural Science Foundation of China under [grant number 71071103].