A network approach for modeling and design of agile supply chains using a flexibility construct

Abstract

Agility can be viewed as a need to encourage the enterprise-wide integration of flexible and core competent resources so as to offer value-added product and services in a volatile competitive environment. Since flexibility is considered a property that provides change capabilities of different enterprise-wide resources and processes in time and cost dimensions, supply chain flexibility can be considered a composite state to enterprise-wide resources to meet agility needs. Enterprise modeling frameworks depicting these composite flexibility states are difficult to model because of the complex and tacit interrelationship among system parameters and also because agility thrives on many business objectives. In view of this, the modeling framework presented in this paper is based on analytical network process (ANP) since this methodology can accommodate the complex and tacit interrelationship among factors affecting enterprise agility. The modeling framework forms a three-level network with the goal of attaining agility from the perspective of market, product, and customer as the actors. The goal depends on substrategies that address the characteristics of the three actors. Each of these substrategies further depends on manufacturing, logistic, sourcing, and information technology (IT) flexibility elements of the enterprise supply chain (SC). The research highlights that, under different environmental conditions, enterprises require synergy among appropriate supply chain flexibilities for practising agility. In the present research, the ANP modeling software tool Super Decisions™ has been used for relative prioritization of the supply chain flexibilities. We demonstrate through sensitivity analysis that dynamic conditions do require adjustments in the enterprise-wide flexibility spectrum.