How did I do explaining. Where would you see an issue?

7. Describe the three types of leagile supply chain strategies (Pareto, decoupling, base and surge), including when each strategy should be utilized. (10 points)

A. The Pareto Curve Approach: Companies that produce and manufacture a mass volume of products should incorporate the Pareto Curve Approach into their strategic approach. This statistical technique is widely used for the variety of limited number of tasks that accommodate a massive overall effect. The Pareto Curve Approach is also known as the 80/20 rule. The 80/20 rule revolves around performing 20% of the work and producing 80% of the benefit of doing the entire job. The Pareto Curve Approach will produce a successful Leagile supply chain strategy by utilizing 20% of leanness for the predictable product and 80% of agility for the less predictable product. The Pareto Curve Approach requires strategically defined market conditions with high levels of product variety and balanced levels of demand in the product range. The difficulty of operational management widens as lean and agile strategies are employed at the exact time. This will lead to the overuse of resources.

B. The Decoupling Approach: The Decoupling Approach is the spot where inventory is put on hold to handle the downstream demand discrepancy. The Decoupling Approach is a perfect approach that allows for change in the supply chain. This is typically between order variation and product variety. This approach is portrayed as a buffer at which point the lean principles can be used. The buffer is also called the material decoupling point. The Decoupling approach should be utilized whenever a good is considered seasonal.

C. Base and Surge Approach: This approach deals with separating the base and surge demands. The Base and Surge Approach is proven to be successful with the fashion industry. The demand history plays a valuable role in determining the base demand. The surge demand follows the agile manufacturing. This supply chain strategy is exploited through outsourcing actions that are involved in the supply chain.