Increasing Supply Chain Robustness During Allocation in a Just-in-Time Supply Set-Up

In situations of scarcity, that is when demand exceeds available supply, a stable allocation of capacities among customers contributes to a more robust supply chain behavior. Given the input of available capacities in the first place, this paper presents an analytical approach that models its smooth tactical distribution by accounting for product-level deviations. The proposed model may serve as input for allocation determination in situations with demand surges. Simulating the model and conducting experiments using real-world data from a globally acting semiconductor manufacturer, it provides empirical evidence of results in terms of supply chain stability. Still, the proposed model ensures sufficient flexibility due to well-defined target inventory levels.