Track: Sustainable Operations and Supply Chain Management

Abstract

The paper presents the new quantitative framework to optimise Leagile Supply Chain (LASC) design. The first step utilises Lean tools to identify the optimal architecture for product families through the so-called Leagile bills-of-material in product design. This step intends to reduce the storage keeping unit of the component set (Lean), while increasing the ability of combining them to create new products (Agile). Meantime, the second stage focuses on outlining the preliminary configuration of LASC with pre-defined decoupling and risk-pooling points. From then, the product architecture is matched with a supplier network before the supply side is refined. Afterwards, step four implements Lean philosophy to leanize the upstream site up to decoupling point. Finally, LASC's cost structure, which comprises from two different product types, is analysed. Based on minimising the total cost at a certain service level, the best configuration of LASC is optimised.The whole framework is illustrated in one specific case study.