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Strategic Supply Chain Framework For The Automotive Industry

A strategic supply chain framework called "leagile" is proposed for the automotive industry that combines lean and agile paradigms. The framework positions a decoupling point in the supply chain that allows upstream processes to operate lean through level scheduling while downstream responds agilely to volatile customer demand. This leagile supply chain framework could help the automotive industry address current challenges by achieving batch-size-of-one customer orders on time while maintaining a reliable production and delivery process.

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Subash Adhikari
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297 views1 page

Strategic Supply Chain Framework For The Automotive Industry

A strategic supply chain framework called "leagile" is proposed for the automotive industry that combines lean and agile paradigms. The framework positions a decoupling point in the supply chain that allows upstream processes to operate lean through level scheduling while downstream responds agilely to volatile customer demand. This leagile supply chain framework could help the automotive industry address current challenges by achieving batch-size-of-one customer orders on time while maintaining a reliable production and delivery process.

Uploaded by

Subash Adhikari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Strategic supply chain framework for the automotive industry

M. Ambe* and J. A. Badenhorst-Weiss


Department of Business Management, College of Economic and Management
Sciences, University of South Africa, P. O. Box 392, UNISA 0003, South Africa.
Accepted 7 June, 2010

leagile supply chain is a strategy for competitive advantage.


key issue in the industry is the reliability of the production and delivery process.
Each customer order must become a batch-size-of one, meeting exact customer
requirements in terms of specification and delivery date.
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 while providing level scheduling
upstream from the marketplace. In order to achieve leagile supply chain, the
upstream of the decoupling point should be designed to be lean while downstream
agile as shown in Figure 3. The framework is explained in terms of lean supply
chain, agile supply chain and the decoupling point. Figure 3 depicts the framework
for leagile supply chain in the automobile industry.
leagile supply chain is the strategy of the millennium that can alleviate the
automobile industry from the current challenges

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