IDEAS home Printed from https://ideas.repec.org/a/rnd/arjebs/v3y2011i5p287-295.html
   My bibliography  Save this article

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

Author

Listed:
  • 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.

Suggested Citation

  • 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
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/282/282
    Download Restriction: no
    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/282
    Download Restriction: no
    File URL: https://libkey.io/10.22610/jebs.v3i5.282?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Oktay Karabağ & Barış Tan, 2018. "Analysis of a group purchasing organization under demand and price uncertainty," Flexible Services and Manufacturing Journal, Springer, vol. 30(4), pages 844-883, December.
    2. Sang M. Lee & David L. Olson & Sang-Heui Lee & Taewon Hwang & Matt S. Shin, 2007. "Entrepreneurial applications of the lean approach to service industries," The Service Industries Journal, Taylor & Francis Journals, vol. 28(7), pages 973-987, November.
    3. Demeter, Krisztina & Golini, Ruggero, 2014. "Inventory configurations and drivers: An international study of assembling industries," International Journal of Production Economics, Elsevier, vol. 157(C), pages 62-73.
    4. Hoppenheit, Steffi & Günthner, Willibald A., 2015. "Identifying Main Drivers on Inventory using Regression Analysis," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Blecker, Thorsten & Kersten, Wolfgang & Ringle, Christian M. (ed.), Operational Excellence in Logistics and Supply Chains: Optimization Methods, Data-driven Approaches and Security Insights. Proceedings of the Hamburg , volume 22, pages 141-169, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    5. Qi, Yinan & Huo, Baofeng & Wang, Zhiqiang & Yeung, Hoi Yan Jeff, 2017. "The impact of operations and supply chain strategies on integration and performance," International Journal of Production Economics, Elsevier, vol. 185(C), pages 162-174.
    6. Xiaoyi Liu & Jonghyun Lee & Peter Kitanidis & Jack Parker & Ungtae Kim, 2012. "Value of Information as a Context-Specific Measure of Uncertainty in Groundwater Remediation," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(6), pages 1513-1535, April.
    7. François Fulconis & Gérard Roveillo & Gilles Paché, 2008. "Transport, poor relation or pillar of contemporary supply networks? [Le transport, parent pauvre ou pièce maîtresse des schémas d’approvisionnement contemporains ?]," Post-Print hal-02491721, HAL.
    8. McKelvey, Bill & Wycisk, Christine & Hülsmann, Michael, 2009. "Designing an electronic auction market for complex 'smart parts' logistics: Options based on LeBaron's computational stock market," International Journal of Production Economics, Elsevier, vol. 120(2), pages 476-494, August.
    9. Ho-Yin Mak & Zuo-Jun Max Shen, 2014. "Pooling and Dependence of Demand and Yield in Multiple-Location Inventory Systems," Manufacturing & Service Operations Management, INFORMS, vol. 16(2), pages 263-269, May.
    10. Sohn, So Young & Lim, Michael, 2008. "The effect of forecasting and information sharing in SCM for multi-generation products," European Journal of Operational Research, Elsevier, vol. 186(1), pages 276-287, April.
    11. Nurmilaakso, Juha-Miikka, 2008. "Adoption of e-business functions and migration from EDI-based to XML-based e-business frameworks in supply chain integration," International Journal of Production Economics, Elsevier, vol. 113(2), pages 721-733, June.
    12. Jessica L. Darby & David J. Ketchen & Brent D. Williams & Travis Tokar, 2020. "The Implications of Firm‐Specific Policy Risk, Policy Uncertainty, and Industry Factors for Inventory: A Resource Dependence Perspective," Journal of Supply Chain Management, Institute for Supply Management, vol. 56(4), pages 3-24, October.
    13. Jacobs, Mark A. & Yu, Wantao & Chavez, Roberto, 2016. "The effect of internal communication and employee satisfaction on supply chain integration," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 60-70.
    14. Natalia Szozda & Artur Świerczek, 2022. "Upstream and downstream dyad governance within the network structures: Creating supply chain governance for the customized products," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 873-898, June.
    15. White, A. & Daniel, E.M. & Mohdzain, M., 2005. "The role of emergent information technologies and systems in enabling supply chain agility," International Journal of Information Management, Elsevier, vol. 25(5), pages 396-410.
    16. Jalali, Hamed & Carmen, Raïsa & Van Nieuwenhuyse, Inneke & Boute, Robert, 2019. "Quality and pricing decisions in production/inventory systems," European Journal of Operational Research, Elsevier, vol. 272(1), pages 195-206.
    17. Brian Mittendorf & Jiwoong Shin & Dae-Hee Yoon, 2013. "Manufacturer marketing initiatives and retailer information sharing," Quantitative Marketing and Economics (QME), Springer, vol. 11(2), pages 263-287, June.
    18. Frankel, Robert, 2006. "The role and relevance of refocused inventory: Supply chain management solutions," Business Horizons, Elsevier, vol. 49(4), pages 275-286.
    19. Hoogstra-Klein, Marjanke A. & Meijboom, Kars, 2021. "A qualitative exploration of the wood product supply chain – investigating the possibilities and desirability of an increased demand orientation," Forest Policy and Economics, Elsevier, vol. 133(C).
    20. Yu, Yanan & He, Yong & Zhao, Xuan, 2021. "Impact of demand information sharing on organic farming adoption: An evolutionary game approach," Technological Forecasting and Social Change, Elsevier, vol. 172(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arjebs:v:3:y:2011:i:5:p:287-295. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/jebs .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.