Flexibility strategy in delayed differentiation model of steel products

Distribution enterprises that implement delayed product differentiation establish network relations, invest in flexible resources, accumulate inventory of base products, ensure flexible transport. The aim of this paper is to identify the sensitivity of flexible distribution system with deferred production to the demand fluctuations. The flexibility of distribution system was analyzed in three forms: production infrastructure flexibility, sourcing dedicated resources from a cooperator based on formal relations and sourcing production capacity from the cooperator based on informal cooperation. The research was carried out in the steel products distribution sector. The flagship enterprise of distributions channels were identified, that organize the flows of steel pipes. A flagship enterprise in steel products distribution sector carries out deferred production tasks, selecting machinery flexibility levels and shaping network relations with sub-contractors. Structured interviews were carried out, resources strategies were indicated on the basis of collected primary and secondary data, a reliability indicator was defined and simulation experiments in systems dynamics technique were carried out. The results of the research carried out allowed for the conceptualization of flexible resources strategy of the main link of distribution channels and to direct future research on variables not included in the model, especially disruptions in different models of flexible resources strategy and atmosphere of network cooperation.