Agile and Lean Supply Chain Management Essay

1735 Words May 6th, 2012 7 Pages
Leanness means developing a value stream to eliminate all waste, including time, and to ensure a level schedule. Agility means using market knowledge and a virtual corporation to exploit profitable opportunities in a volatile marketplace. Leagile is the combination of the lean and agile paradigms within a total supply chain strategy by positioning the decoupling point so as to best suit the need for responding to a volatile demand downstream yet providing level scheduling upstream from the marketplace. The decoupling point separates the part of the organisation (supply chain) oriented towards customer orders from the part of the organisation (supply chain) based on planning. In this report, I attempt to prepare the literature review of …show more content…
Finally, this paper included case studies illustrating the approach and representing real-world supply chains in three different market sectors and applying Material Flow Control Principles to them. The three markets and designs were mechanical precision products (lean); carpet manufacture (agile); and electronics products (leagile). In general, they concluded such a categorization by product types could prove clear rules for supply chain engineering for each market segment and enabled engineers to apply lean, agile, and leagile principles according to the real needs of the specific supply chain. Bruce and Daly (2004) studied the supply chain management approaches used in the textiles and apparel sector. Considering textiles and apparel was characterised by volatile markets, short product

lifecycles and high product variety, the framework of the study was constructed by case studies of companies at different points of the textiles and apparel chain. They designated Lean, agile or leagile supply paradigms to companies. Company 1, a fashion producer for the high street, managed its manufacturing activities by producing overseas to take advantage of low costs, with an ability to meet short-lead times with a UK based production facility. This company illustrated a leagile approach. Similarly, Company 3, sportswear

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