The Capacity Management of Dependent Manufacturer in Dealing with Uncertainty in Asymmetric Relationships

In the supply chain system, the asymmetric relationship is noticeable. The dependent partners in the supply chain system are often more reactive than proactive in managing the impact of the relationship on performance. There are several tactical factors for the dependent companies reacting to the uncertainty of the asymmetric relationships. Managing capacity in order to balance customer satisfaction and cost-efficiency is an essential topic for the dependent partners. However, very limited studies discuss how the dependent companies manage their capacity in the uncertainty of asymmetric relationships. Discrete event simulation (DES) is used in this study to explain scenarios for better order fulfillment and cost-efficiency. Joint capacity management is introduced as an alternative solution. Thus, further study of capacity management, such as capacity pooling, is important in managing uncertainty from asymmetric relationships.