On the one hand, intra-firm inventory management flexibilities
enable a firm to have good control on stock and keep a high level of availability to customer demands; thus, by leveraging the service-cost trade off relationship, the organization can keep a reasonable level of raw material inventory, work-in-process inventory, and finished goods inventory and reduce inventory waste simultaneously.
Finally, the other two job rewards, "likelihood of bonus or pay increase" and "satisfaction comes from work" display no significant coefficients with the interactive factors while they have significant regression coefficients with functional and/or numerical flexibilities. Functionally flexible jobs create significantly better opportunities to use multiple skills, participate in teamwork, and decision making, thereby improving workers' "satisfaction comes from jobs." The same is true for attitudes reflecting "likelihood of bonus or pay increase."
Finally, keeping the additive effects of flexibilities and the background factors under control, five out of seven interactive coefficients still remain statistically significant.
(2) Other types of flexibilities, such as "flexible shift work schedules" (workers may vary the time they begin or end work), or "pay and wage flexibility" (workers' wages vary with business fluctuation) have been discussed in previous studies.
Based on a detailed review of the relevant literature, in Table 1 we have presented the various types of flexibilities, their brief definitions, some measures that have been suggested and selected references.
The term "aggregate flexibility" implies the joint effect of all types of flexibilities that exist in the manufacturing system under consideration.
Specifically, our objectives in this paper are twofold: (i) to propose a measurement approach based on the optimal net revenues (net of relevant costs) generated by the manufacturing system while operating in an uncertain environment, and (ii) to develop and solve a stochastic mathematical programming model which incorporates various types of flexibilities and facilitates the determination of the optimal net revenues in the different states of the operating environment.
states, which type of flexibility or combination of flexibilities would be most attractive?
Research Question 1: Do higher levels of perceived environmental uncertainty result in a greater emphasis on one or more supply chain flexibilities?
Research Question 3: Does greater strategic emphasis on supply chain flexibilities lead to higher performance on each of these dimensions?
Indeed, this article defines "supply chain flexibilities" as those flexibilities which are the shared responsibility of two or more functions along the supply chain.
The five supply chain flexibilities were defined on the research questionnaire so that respondents would have a common understanding of their meanings.