Why Do Companies Need Operational Flexibility to Reduce Waste at Source?

We analyze the environmental benefits of operational flexibility that emerge in form less product waste during sourcing process by reducing overproduction. consider three different options for flexibility: (1) lead-time reduction, (2) quantity-flexibility contracts, and (3) multiple sourcing. use a multiplicative demand to model evolutionary dynamics uncertainty. then quantify impact key modeling parameters each operational-flexibility strategy on ratio, which is measured as ratio excess inventory when certain employed amount an offshore supplier utilized without any flexibility. find reduction has maximum capability reduce buyers, followed multiple-sourcing strategies, respectively. Thus, our results indicate strategies rely localization production are improving sustainability at source.