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DOI 10.1007/s10845-014-0957-9
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J Intell Manuf
Literature review
Literature review based on leagile supply chain
management
Naylor et al. (1999) compared the lean and agile manufacturing paradigms, highlighting similarities and differences. The
authors introduced the leagility concept within the total sup-
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Data collection
considered LAAs which are elements constituting the underlying structure of a leagile organization. They were originally conceived as core concepts of the leagile manufacturing and supply chain. Accordingly, LAEs are enabling tools,
technologies and methods critical to successfully accomplish
leagile supply chain management. Based on related literature,
CBs, LAAs and LAEs were identified.
Selection of CBs, LAAs and LAEs to suit needs of the
company being studied
Based on literature review and with the help of experts from
the case company, CBs, LAAs and LAEs are chosen according to the case companys special characteristics. Based on
data collected through questionnaires and interviews, most
appropriate CBs, LAAs and LAEs relevant to the case company are to be identified.
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Table 1 Nine -point scale (Saaty 2008)
Scale
Definition
Explanation
Equal importance
Moderate importance
Strong importance
Extreme importance
Evidence favouring one activity over another is of the highest possible order of affirmation
2, 4, 6, 8
For compromise values, sometimes one needs to interpolate a compromise between the above
judgment numerically because there is no good word to describe it
Reciprocals of above
If activity A has one of the above numbers assigned to it when compared with activity B, then B
has the reciprocal value when compared with A; for example, if the pair wise comparison of A to
B is 3.0, then the pair wise comparison of B to A is 1/3
Degree of relationships
Fuzzy numbers
Degree of correlation
Fuzzy numbers
Strong
(0.7; 1; 1)
(0.7; 1; 1)
Medium
Positive (P)
(0.5; 0.7; 1)
Weak
(0; 0; 0.3)
Negative (N)
(0; 0; 0.3)
0xa i f x a
i
f
a
b
ba
A (x) = cx
if b x c
cb
0
if x c
If M = (a1 , b1 , c1 ) and N = (a2 , b2 , c2 ) represent two
TFNs, then,
Fuzzy addition : M + N = (a1 + a2 ; b1 + b2 ; c1 + c2 )
Fuzzy multiplication: M N = (a1 a2 ; b1 b2 ; c1 c2 )
Fuzzy division: M/N = (a1 /a2 ; b1 /b2 ; c1 /c2 )
Fuzzy reciprocal: 1/M = (1/c1 ; 1/b1 ; 1/a1 )
Fuzzy and natural number multiplication: r M = (r.a; r.b;
r.c)
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Table 4 CBs and LAAs for the
case company
CB1
Cost
LAA1
CB2
Quality
LAA2
Delivery reliability
CB3
Availability
LAA3
Cost efficiency
CB4
Responsiveness
LAA4
Market sensitivity
CB5
Speed
LAA5
Customer focus
CB6
Flexibility
LAA6
Volume flexibility
CB7
Innovation
LAA7
CB8
Competency
LAA8
Delivery responsiveness
LAA9
Enterprise integration
LAA10
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Conformance quality
sions were held with the experts to identify the CBs, LAAs
and LAEs which are relevant to the case company. Apart
from choosing from the literature, the experts tried to identify
the decisive factors which are specific to their company. For
example, availability is identified as competitive base from
companys perspective as consumer can opt for an alternative product if the product is unavailable in the market. Similarly, advanced technology in food processing is added as
an enabler by the experts. Finally, with the help of literature
review, questionnaires and discussions, 8 CBs, 10 LAAs and
20 LAEs relevant to the case company were identified. These
are shown in Tables 4 and 5.
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Table 5 LAEs for the case company
Sl.No
Leagile enablers
Description
LAE1
LAE2
LAE3
LAE4
LAE5
LAE6
LAE7
Enables partners in supply chain to act on the same real data rather
than relying on distorted and noisy picture that emerges in an
extended supply chain
LAE8
E-business
LAE9
10
LAE10
11
LAE11
12
LAE12
13
LAE13
14
LAE14
Flexible automation
15
LAE15
Process integration
16
LAE16
17
LAE17
18
LAE18
19
LAE19
20
LAE20
ri j = X i j /
X i2j for i = 1 to m; j = 1 to n
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Table 6 AHP decision matrix
and priority weights
CB1
CB2
CB3
CB4
CB5
CB6
CB7
CB8
Priority weights
CB1
2.1
2.3
2.4
2.4
2.6
2.5
2.6
0.23458
CB2
0.48
1.4
2.1
1.8
2.1
1.3
2.8
0.1632
CB3
0.43
0.71
1.8
2.1
1.7
1.2
2.9
0.1437
CB4
0.42
0.48
0.55
1.8
2.8
2.9
2.5
0.1342
CB5
0.38
0.55
0.47
0.55
1.2
1.8
1.8
0.0933
CB6
0.4
0.47
0.59
0.36
0.83
2.8
2.1
0.092
CB7
0.38
0.77
0.83
0.34
0.55
0.36
2.4
0.0755
CB8
0.38
0.36
0.34
0.4
0.55
0.48
0.42
0.0522
WCB
0.236
CB1
0.163
CB2
0.144
CB3
0.134
CB4
0.093
CB5
0.092
CB6
0.076
CB7
0.052
CB8
LAA1
2.1
5.5
2.1
1.9
1.6
1.2
1.4
3.2
LAA2
2.1
1.9
1.6
4.1
3.9
1.9
3.8
2.1
LAA3
2.3
3.6
2.1
2.6
2.8
1.5
1.6
1.9
LAA4
2.2
1.5
3.9
4.1
4.3
2.1
3.9
2.5
LAA5
2.3
3.4
3.9
2.9
2.8
4.1
4.2
3.3
LAA6
2.2
1.9
4.1
3.8
2.9
2.8
2.1
2.3
LAA7
2.9
2.1
4.3
3.1
2.8
4.1
3.2
1.9
LAA8
2.4
3.1
3.2
4.6
4.9
3.1
4.2
2.5
LAA9
2.3
2.9
3.1
3.2
3.3
2.9
2.7
2.1
LAA10
2.4
3.1
3.2
3.1
3.9
3.8
4.1
3.1
Step 5:
(a) Separation from ideal solution A* is calculated using,
S j
V j
Vi j
2
for i = 1, . . .. . .m
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V j Vi j
2
for i = 1, . . .. . .m
where, V j = {min Vi j i f j J ; max Vi j i f j
J }
S j
J Intell Manuf
Table 8 Priority weights by
TOPSIS
Si =
vj vij 2
Si =
[(vj vij )2 ]2
Priority weights
Ci = Si /Si +Si
Normalized
weights
LAA1
0.39451
0.486598
0.55226
0.09803
LAA2
0.27781
0.255973
0.47954
0.085122
LAA3
0.35288
0.216374
0.38010
0.06747
LAA4
0.15369
0.317687
0.67395
0.119631
LAA5
0.21467
0.331655
0.60706
0.107758
LAA6
0.20943
0.280969
0.57294
0.1017
LAA7
0.21138
0.291447
0.57962
0.102886
LAA8
0.13854
0.367419
0.72618
0.128903
LAA9
0.24606
0.221555
0.47379
0.084102
LAA10
0.19978
0.285283
0.58813
0.104398
Fig. 3 Fuzzy HOQ developed for the case company between LAAS and LAEs
(3)
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understood that LAE2 (Collaborative relationship with suppliers and customers) has highest crisp value followed by
LAE7 (EDI and IT tools) which was the next highest in crisp
value. Collaborative relationship promises improved supply
chain performance in several core areas including increased
sales, improved forecasts, more accurate and timely information, reduced costs, reduced inventory and improved customer service (Soni and Kodali 2012). The presence of trust
at all stages reduces transaction time and makes flow of funds
and material faster, thereby increasing responsiveness of the
supply chain. The integration of information systems like
electronic data interchange facilitates improved management
of food product inventories, greater efficiency in distribution
and improved customer service levels. That is why EDI and
IT tools are the second priority among enablers. Strategic
alliance with other organizations (LAE19) is the third priority due to strategic alliances that helps companies access new
markets, expands geographic reach and obtains state of art
technology and core competencies at relatively faster rates.
Strategic alliances enable management with increasing organizational and technological complexities which emerged in
the global market. Flexible automation (LAE14) is the next
priority to LAE19. Flexible automation offers benefits like
reduced work-in-process, lead-time reduction, increased productivity and improved quality. Logistics plays a vital role
in the food industry to transport products in time at various stages. Logistics comprises several inter-related activities
including freight transport, warehousing, inventory management, materials handling and related information processing.
The supply and deliveries at various stages can be monitored with integrated logistics management enhancing delivery speed and reliability. Integrated logistics management
(LAE17) obtained the fifth priority.
Virtual Enterprise (LAE1), Vendor Managed Inventory
(LAE3), E- Business (LAE8), Process Integration (LAE15)
and new product development (LAE20) are the next priorities among the top 10 enablers. Based on market characteristics and customer demand, Virtual Enterprise can be
formed to take advantage of core competitiveness of each
partner. The promising benefits from Vendor managed Inventory like reduced inventory costs for supplier and buyer and
improved customer service levels motivated the organization
to implement Vendor Managed Inventory practices (Achabal
et al. 2000). Organizations have understood that conducting
business electronically reduces transaction costs, improves
revenues and enables them to manage corporate resources
efficiently and effectively. Process integration is the collaborative working between buyers and suppliers, joint product development, common systems and shared information.
Introducing a new product into the market can definitely bring
promising benefits like greater market share and higher profitability (Jayaram et al. 1999). The positioning of Decoupling Point, Customer focus and satisfaction, just in-time,
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advanced technology in food processing, Cycle time reduction Measures, Total Quality Management, Collaborative
Planning Forecasting Replenishment, Transhipments in inventory management, human resource management and Information Technology in Production Planning and Control are
the next priorities. The management can improve the leagility
of the organisation by exploiting these enablers, prioritywise. The management focussed on measures to improve
the leagility of its supply chain based on the prioritization of
enablers.
Validation of the approach
To validate the feasibility of this approach, the results are
placed before three experts individually, for validation. The
experts are from the top management of the case company
with rich experience in the company and are not part of
the experts committee which participated in this study. The
experts express their satisfaction on results obtained from
this approach and agreed that the study was useful to enhance
the competitiveness of their firm by improving its leagility.
Based on the analysis of results and validation by experts, this
approach is practically feasible for organizations to improve
their leagility based on their preferences which suit their market characteristics.
Managerial implications
The framework presented in this paper helps in the empirical analysis of LAEs which management could consider
in the implementation of leagile supply chain. It is evident
from the results that the prioritization of LAEs is helpful to
enhance the performance of the organization by improving
its leagility. This approach will helpful to management to
implement leagile supply chain management, thus achieving
the both cost effectiveness and responsiveness in their supply
chain. Depending upon the competitive priorities of the market, this approach will guide the management in selecting the
best practices which should be implemented by organizations
to enhance leagility.
Conclusions
The current competitive and unstable market trends, increased product variety, and demand fluctuations compel organizations to adopt new strategies, to enable them to sustain in
global competition. Meeting customer demands at a quicker
rate and keeping costs low are key factors for organizations
to sustain in a global competition. With the development
of economy and technology, more intense competition has
emerged. The leagile supply chain management paradigm
which includes both lean and agile principles has attained
J Intell Manuf
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