Analytical framework reveals how process flexibility enhances resilience in supply systems, suggesting effective capacity planning strategies.
A New Perspective on Resilience in Flexible Supply Systems Supply disruptions and demand uncertainty are persistent threats in today’s global operations landscape. In “Process Flexibility: A Distribution-Free Approach to Long Chain Resilience,” Chen, Chou, and Sun revisit the long-standing concept of long chain flexibility and demonstrate its resilience in the face of supply-side risks. By deriving a closed-form bound on expected sales relative to full flexibility, the study offers a robust, distribution-free guarantee that highlights the long chain’s ability to hedge against disruptions. The authors further generalize their findings using a novel moment decomposition approach, extending applicability to a broader range of service metrics and capacity-demand scenarios via semidefinite programming. Their results not only reaffirm the demand-pooling power of long chains but also position them as a highly resilient configuration in disrupted environments, offering practical insights for capacity planning in uncertain supply chains.
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Chen et al. (2025) studied this question.
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