Flexibility in supply chain risk management involves the capacity to respond promptly and effectively to disruptions or changes in the supply chain while maintaining customer service levels. This includes being able to switch suppliers, adjust production schedules, and manage inventory dynamically to meet customer demands despite unforeseen events.
Adjusting capacities in a manufacturing environment (A) is a part of flexibility but not as comprehensive as the ability to maintain service levels.
Producing high volume SKUs in multiple locations (C) and producing complex configurations of a product within the standard lead time (D) are aspects of flexibility but do not capture the broader definition related to risk management and customer service.
References
Tang, C. S. (2006). Robust strategies for mitigating supply chain disruptions. International Journal of Logistics Research and Applications.
Sheffi, Y. (2005). The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage. MIT Press.
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