Framework
Lean versus agile supply chains
The question it answers
Should an operations manager run a product's supply chain lean to cut waste, or agile with spare capacity to respond fast, when its demand is hard to forecast?
- Origin
- Mason-Jones, Naylor and Towill (2000); Slack et al. (2022) ch. 16
- Diagram type
- Comparison table
- Level of analysis
- Firm
Diagram
Lean versus agile supply chains
| Criterion | Lean | Agile |
|---|---|---|
| Typical products | Staples | Fashion goods |
| Demand | Predictable | Volatile |
| Variety | Low | High |
| Life cycle | Long | Short |
| Customer buys on | Price | Availability |
| Margin | Low | High |
| Penalty for stock-out | Long-term contracts | Immediate and unpredictable |
| Role of information | Desirable | Essential |
| Forecasting | Algorithmic | Consultative |
Pitfalls
Pitfall
Low cost from informal relationships is not lean; lean needs visible demand and contractual coordination.
Sources
References
Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.
- Mason-Jones, R., Naylor, B. and Towill, D.R. (2000) ‘Lean, agile or leagile? Matching your supply chain to the marketplace’, International Journal of Production Research, 38(17), pp. 4061–4070.doi:10.1080/00207540050204920Source page
- Slack, N., Brandon-Jones, A. and Burgess, N. (2022) Operations Management (10th edn). Harlow: Pearson.No DOISource page