Decision support framework for supply chain planning with flexible demand

Abstract

The most challenging issue of today's production management is certainly to manage networked organizations under an uncertain demand so as to provide a good service to the customer at low cost. In this article, a model of the decision making parameters involved in this management process is suggested, on the base of case studies. A mixed integer linear planning model embedded in a framework simulating a rolling horizon planning process is described on the basis of this analysis. The model takes into account the capabilities of reaction of the planned system and of its environment (suppliers, sub-contractors and customers), as well as the corresponding costs. The suggested simulation framework may assist the decision maker for coping with an uncertain or flexible demand, using various planning strategies. Some possible applications of this simulation framework are given in order to illustrate how it can help to solve various types of practical planning problems.

Keywords:

• Supply chain
• Production planning
• Decision making
• Optimization
• Performance evaluation
• Uncertainty