Under the pressure of global competition, manufacturing firms are forced to continually improve production efficiency, product quality and delivery responsiveness. This study aims to develop a better understanding of the production planning problems for a supply chain for low-volume production in make-to-order environment. The objectives of this paper are to develop a generic framework for describing the strategic planning process for a supply chain and to model the propagation of uncertainty and variability in it. Focus is on the benchmarking of the performance of a supply chain, understanding the impact of different characteristics (including the sources of uncertainty and variability) to the planning of it and on possibilities of improving the performance of a supply chain.
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