Modeling the metrics of lean, agile and leagile supply chain: An ANP-based approach

Abstract

With the emergence of a business era that embraces ‘change’ as one of its major characteristics, manufacturing success and survival are becoming more and more difficult to ensure. The emphasis is on adaptability to changes in the business environment and on addressing market and customer needs proactively. Changes in the business environment due to varying needs of the customers lead to uncertainty in the decision parameters. Flexibility is needed in the supply chain to counter the uncertainty in the decision parameters. A supply chain adapts the changes if it is flexible and agile in nature. A framework is presented in this paper, which encapsulates the market sensitiveness, process integration, information driver and flexibility measures of supply chain performance. The paper explores the relationship among lead-time, cost, quality, and service level and the leanness and agility of a case supply chain in fast moving consumer goods business. The paper concludes with the justification of the framework, which analyses the effect of market winning criteria and market qualifying criteria on the three types of supply chains: lean, agile and leagile.