multi_stage_flex

multi_stage_flex - There are two key phenomena that affect...

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There are two key phenomena that affect multiple-stage supply chains • Floating bottlenecks • Stage-spanning bottlenecks Reference: Graves, Tomlin, “Process Flexibility in Supply Chains,” 2003.
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• Floating bottlenecks Stage 1 1 2 3 Stage 2 1 2 3 Demand Scenario Probability Product 1 Product 2 Product 3 Stage 1 Stand Alone Shortfall Stage 2 Shortall Supply Chain 10 . 5 100 50 150 0 2 0.5 0 Expected 25 The expected shortfall is larger than the maximum expected stand-alone stage shortfall as the bottleneck floats between stages
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• Stage-spanning bottlenecks Stage 1 1 2 3 Stage 2 1 2 3 Demand Product 1 Product 2 Product 3 Stage 1 Stand lone Stage 2 Supply Chain ortfall 150 50 100 These two phenomena are called inefficiencies
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Simulation shows that these inefficiencies can significantly affect a supply chain’s performance Figure 8 Inefficiencies for Pairs Configuration 0% 20% 40% 60% 2 3 4 5 6 Numb er of Stages Pairs, CI Pairs, CFI Pairs, CSI
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A pairs strategy performs much worse than a total flexibility strategy
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multi_stage_flex - There are two key phenomena that affect...

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