In today’s global scenario of intense competition and environmental uncertainty flexibility in supply chain has an important role to play for the existence of any supply chain business. A need to be responsive to the constantly changing market scenario and cater to the customer needs, a certain degree of flexibility is required, which requires the coordination of many plants to produce and deliver goods to customers located in different places, and suppliers, which provide each plant with the required components. This paper intends to measure the degree of flexibility required for a two stage supply chain and assessing both the supplier flexibility and the assembler flexibility. In this paper, nine configurations of the SC are considered resulting from the combination of the three degrees of supplier and manufacturer flexibility, i.e. no flexibility, limited flexibility and total flexibility, respectively. Simulation model representing the different flexibility configurations are evaluated and the performance of each configuration analyzed to determine the flexibility configuration suitable to a supply chain. In particular the performance analysis of lead time, work-in-process, service level and cost are measured to determine the suitable flexibility.

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