Article

MODELING LEAN, AGILE, AND LEAGILE SUPPLY CHAIN STRATEGIES

Journal of Business Logistics 02/2006; 27(1):57 - 80. DOI: 10.1002/j.2158-1592.2006.tb00241.x

ABSTRACT The merits of lean and agile supply chain strategies have been much debated among practitioners and academics. While these strategies are often viewed as opposites, this research supports the view that they must not necessarily compete and can, in fact, be employed simultaneously through a so-called “leagile” approach. Lean, agile, and leagile strategies are illustrated by modeling their respective applications at a tier-1 supplier to the Heating, Ventilating, and Air-Conditioning (HVAC) industry. Simulation analyses indicate that the lean system excels in customer service performance while the leagile system results in lower enterprise-wide inventory levels under modeled circumstances. Subsequent analysis suggests that trade-offs exist among the systems in the base case and under varying cost conditions.

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    ABSTRACT: Supply chains (SC) in an attempt to become more competitive, are adopting new management paradigms. Among these paradigms the following are considered particularly important to the SC's competitiveness: Lean (L), Agile (A), Resilient (R) and Green (G). This chapter proposes a fuzzy LARG index model to assess the implementation level of Lean, Agile, Resilient and Green management practices by automotive supply chains (SCs). To attain this objective a numeric-linguistic interface based on fuzzy logic is proposed and an illustrative case methodology followed. Due to the uncertainties surrounding the SC’s environment and the qualitative description of the SC’s management practices implementation level, fuzzy logic can provide an effective assessment tool able to quickly incorporate changes in the SC’s business policy.
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