The Role of Production Flexibility and Supply Chain Agility on Supply Chain Performance

Today, improving supply chain performance is inevitable, and to this end, it is vital to take advantage of product diversity management and, consequently, some of the capabilities of production, such as the flexibility of production. The present study aims to investigate the role of product flexibility and supply chain agility in the impact of product diversity management on supply chain performance. This study is applied from the viewpoint of purpose and is descriptive-survey from the viewpoint of research. The statistical population is composed of 1107 managers of industrial companies of Abbas Abad Industrial Town. In this research, 285 managers or vice-presidents of manufacturing companies participated in the study by random sampling. For data gathering, a standard questionnaire was used. The results of structural equation modeling showed that due to the issue of customization with high degree, external capability in the form of supply chain agility played a crucial role in improving cost efficiency and customer service.