Abstract
We study in this paper the effects of volume flexibility, delivery flexibility and operational decision flexibility in operational supply chain planning under uncertain demand. We use a rolling schedule to plan supply chain operations for a whole year. The planning horizon is 4 weeks with deterministic demand in the first week and predicted for the following 3 weeks. Using a case from the Norwegian meat industry, we compare the annual operating results of using a two-stage stochastic programming model to the deterministic expected value problem in order to discuss the impact of flexibility in the supply chain.
