Supply chain reactivity assessment regarding two negotiated commitments: Frozen horizon and flexibility rate

Abstract

The problem addressed in this paper is the supply chain reactivity assessment through numerical experimentations regarding specifically two negotiated commitments within supply contract: the frozen horizon and flexibility rate. Analysis of impact of these commitments on each partner will be depicted in term of storage costs, reliability and reactivity indicators. The decision making inside each partner is operated under rolling horizon planning and based on production linear programming model wherein different contractual commitments are included. To carry out experimental scenarios, simulation platform is developed from which expecting numerical results afford deciders to get more understanding about the commitments that should be contracted and the relevant dimensioning of them. © 2010 IFIP International Federation for Information Processing.