Upstream vs. Downstream Flexibility in aProduction-Distribution Supply Chain

The capability to improve market responsiveness to meet future uncertain demand is acritical imperative for many firms today. Flexibility in the supply chain to accommodatesuch changes in demand is a function of the alternative routes a product may take as it travelsfrom the plant where it is made to the distribution center to the regional warehouse andfinally to the retailer. From a supply chain perspective, this output flexibility means thecapability of the network to provide a mix of products at the retail level. This paper tries toprovide an insight into supply chain flexibility by comparing upstream and downstreamflexibility from a two-echelon multi-product scenario. The two echelons modeled here arethe plant and the distribution center.[...]