Dedicated Agility: A New Approach for Designing Production Networks

Abstract

Production networks face new challenges in today's volatile world. Rapidly changing internal and external conditions require a new type of production network design that enables quick adjustments after implementation. It is necessary to design the adaptability of the network explicitly. To meet these challenges an agile production network is needed. Thus, this paper proposes a systematic approach to design the necessary degree of agility in production networks. The idea of the presented approach is to determine a dedicated agility level for a network between flexibility in adaption and corresponding costs, based on specific volatilities.

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