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Vol 27 - No 10 - December 2001/January 2002

Engineer Your Supply Chain To Cope With Demand Uncertainties

The current debate between ‘lean and agile' has highlighted the need to engineer supply chains to best cope with demand uncertainties.

Agility is advocated for circumstances of high demand uncertainty, to best service unpredictable customer demands. Conversely the advantages of lean are greatest in circumstances of low demand uncertainty, where cost is the major order winner. This article compares the similarities and differences of the lean and agile methodologies. It then allows the reader to question whether their company is following the most appropriate strategy and gives some practical actions to improve the match between supply chain strategy and product demand characteristics.


Page number: 14
Word count: 2500

Related Topics:
Analytical techniques
Lean operations
Supply chain

 

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