Production network flexibility: case study of Norwegian diary production network

Abstract

By increasing advances in the production networks planning, understanding of relations and dynamics of production networks is gaining more attention in order to use all network capabilities. To achieve this understanding, it is not only important to have a good understanding of individual firm’s manufacturing flexibility next to supply chain flexibility, but also to consider the internal (among production network’s facilities) and external (other tiers of supply chain) relationships in a production network. Studying the production network’s flexibility dimensions facilitates the effective use of the synergy of cooperation in the network. On other words, the potential in the network structure cannot be exploited unless the planning and control of network consider the available flexibility of network and operationalize the opportunities which arise. This paper identifies different dimensions of flexibility in a production network and describes how they can support firms in responding to customers’ needs. This research employs exploratory and descriptive approaches and uses a single case study of Norwegian diary to capture the dynamics of production networks. Three product categories with different network characteristics are selected, and the identified network flexibility dimensions are investigated for these products. The status of case company under each flexibility dimension is presented and discussed.

Keywords

Production network / Flexibility / Planning / Capacity / Inventory

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