Flexibility planning in distribution networks

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Companies in the consumer goods sector recognize the critical need for flexibility in their distribution networks to maintain high customer service levels. The challenge lies in effectively setting up and utilizing flexibility potentials, such as excess storage and transport capacities, within distribution planning. This flexibility planning aims to prevent the costs associated with unused capacities while ensuring sufficient adaptability. Key constraints, including lead times and interdependencies among various adaptation measures, must be considered. Additionally, flexibility is influenced by future conditions, complicating the anticipation of demand and increasing planning complexity. The author introduces a planning model that integrates flexibility decisions into distribution planning. By employing a stochastic model, it accommodates various demand scenarios and facilitates responsive adjustments to unexpected changes. The model also forecasts material flow development and addresses the time lag between implementing flexibility measures and realizing their benefits in service levels. Its theoretical and practical contributions are illustrated through evaluation cases involving consumer goods companies. Dominik Pfeiffer, born in 1985, studied Information Systems at the University of Münster and earned his Doctorate in Economics in 2014. He currently works as an IT Architect in a German utility's Strategy and Architecture d