It is also the combination of the lean and agile paradigms within a total supply chain strategy by positioning the decoupling point so as to best suit the need for responding to a volatile demand downstream yet providing level scheduling upstream from the marketplace.
The decoupling point is the point in the material flow streams to which the customers order penetrates. (Mason-Jones, et. al. , 2000) Agility at the downstream end is needed to quickly respond to customer needs or changing market conditions. On the upstream end, leanness focuses on waste elimination or streamlining.
Lean management typically calls for make-to-stock replenishment driven by short-term forecasts, agile supply chains employ make-to-order provisions, producing only what has already been sold or committed in the marketplace (www. allbusiness. com).