Demand Characteristics. To determine Surplus Capacity cost, Portland will use the same Seasonal Peaking Factor and 3-Day Peaking Factor characteristics attributed to Portland Retail Customers within the Portland Model.
Demand Characteristics. (Xxxxxxxx and xxx Xxxx 2005), has defined D-time “as the time that the customer is prepared to wait to have their orders fulfilled”(Xxxxxxxx and xxx Xxxx 2005)p. 135. The D- time might be measured in months, days or minutes. This sets the time objectives for the supply chain, and if D-time is minutes there is no time to process materials or process them. Therefore inventories of finished goods have to be held. Figure 7-8: Xxxx and agile under different demand and supply conditions (Xxxxxxxxxxx and Towill 2000) The figure above shows the relation between lead-time and the predictability of the market. If a market has a short lead-time and is highly unpredictable we have to hold inventory. Distinguishing attributes Lean supply chain Agile supply chain Leagile supply chain Market demand Predictable Volatile Volatile and unpredictable Product variety Low High Medium Product life cycle Long Short Short Customer drivers Cost Lead-time and availability Service level Profit margin Low High Moderate Dominant costs Physical costs Marketability costs Both Stock out penalties Long term contractual Immediate and volatile No place for stock out Purchasing policy Buy goods Assign capacity Vendor managed inventory Information enrichment Highly desirable Obligatory Essential Forecast mechanism Algorithmic Consultative Both/either Typical products Commodities Fashion goods Product as per customer demand Lead time compression Essential Essential Desirable Eliminate muda Essential Desirable Arbitrary Rapid reconfiguration Desirable Essential Essential Robustness Arbitrary Essential Desirable Quality Market qualifier Market qualifier Market qualifier Cost Market winner Market qualifier Market winner Lead-time Market qualifier Market qualifier Market qualifier Service level Market qualifier Market winner Market winner Table 7-1: Comparison of lean, agile, and leagile supply chains (Xxxxxx, Xxxx, and Xxxxx 1999), (Xxxxx-Xxxxx, Xxxxxx, and Towill 2000), (Olhager 2003), (Xxxxx, Xxxx, and Xxxxxx 2004) The table above describes the two different supply chain theories lean and agile, and the combination of these leagile, and how these correspond to the market. As you can see the leagile marketplace is volatile and unpredictable, eliminating of waste (muda) is arbitrary, robustness is desirable, and market winner is cost and service level.
