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Significance of Lean, Agile and Leagile Decoupling Point in Supply Chain Management

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  • Faiza Amir

Abstract

A supply chain is a system, consisting of material suppliers, production facilities, distribution services and customers. These are all linked together through the downstream feed forward flow of materials and the upstream feedback flow of information. Several organizations have adopted the concept of “Lean†to improve the performance and position in the market place and. The “Agile†manufacturing has been recently emerged as a customer demand driven option. It defines as using market knowledge and virtual corporation to exploit profitable opportunities in a volatile marketplace, leanness stands for developing a value stream to eliminate all waste, including time and to ensure a level schedule. Leagile is one suitable way to exploit the both approaches, lean and agile. It requires the selection and setting up of a material flow decoupling point. The positioning of the decoupling point, therefore, depends upon the longest lead-time and at the same time customer is prepared to tolerate this time lag and the point at which variability in product demand dominates. Downstream from the decoupling point all products are pulled by the customer demand, that is why that part of supply chain is market driven. Upstream from the decoupling point the supply chain is essentially forecast driven. This review paper will explore the approaches of lean, agile and leagile decoupling point to suggest the most suitable supply chain practices, processes and procedures. Several factors are needed for lean and agile practices’ success; not only is it necessary to implement most of the technical tools but an organization’s culture needs transforming too.

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  • Faiza Amir, 2011. "Significance of Lean, Agile and Leagile Decoupling Point in Supply Chain Management," Journal of Economics and Behavioral Studies, AMH International, vol. 3(5), pages 287-295.
    • Handle: RePEc:rnd:arjebs:v:3:y:2011:i:5:p:287-295
    DOI: 10.22610/jebs.v3i5.282
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    References listed on IDEAS

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    1. Ben Naylor, J. & Naim, Mohamed M & Berry, Danny, 1999. "Leagility: Integrating the lean and agile manufacturing paradigms in the total supply chain," International Journal of Production Economics, Elsevier, vol. 62(1-2), pages 107-118, May.
    2. Saif Benjaafar & William L. Cooper & Joon-Seok Kim, 2005. "On the Benefits of Pooling in Production-Inventory Systems," Management Science, INFORMS, vol. 51(4), pages 548-565, April.
    3. Gérard P. Cachon & Marshall Fisher, 2000. "Supply Chain Inventory Management and the Value of Shared Information," Management Science, INFORMS, vol. 46(8), pages 1032-1048, August.
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    Cited by:

    1. Yongbo Li & Ali Diabat & Chung-Cheng Lu, 2020. "Leagile supplier selection in Chinese textile industries: a DEMATEL approach," Annals of Operations Research, Springer, vol. 287(1), pages 303-322, April.
    2. David L. Olson & Scott R. Swenseth, 2014. "Trade‐offs in Supply Chain System Risk Mitigation," Systems Research and Behavioral Science, Wiley Blackwell, vol. 31(4), pages 565-579, July.
    3. Peter Agyekum Boateng, PhD* & Comfort Agyekum Boateng, MBA, 2024. "Interdisciplinary Nexus of Lean Thinking and Strategy: An Exploration in to Psychological Resilience, Cultural Adaptability, and Economic Sustainability," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 10(12), pages 167-175, January.

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