The Principle of Legality Essay Example | Topics and Well Written Essays - 1000 words

The Principle of Legality - Essay Example Such an integrated supply chain would be especially effective if it is designed after the market knowledge is taken into consideration and the decoupling point is properly determined. The principle of legality is based upon the premise that two different kinds of initiatives can be successfully combined in improving the efficiency of the supply chain and making the agile supply chain a reality. One of these aspects is postponement and the other is information decoupling, and Naylor et al (2000) have argued that these two can be combined into a liability or the combination of both agility as well as lean capabilities into one supply chain. Agility is defined as â€Å"using market knowledge and a virtual corporation† in order to be able to exploit the most profitable opportunities within a volatile marketplace. Leanness, on the other hand, refers to the development of a value supply chain stream that ensures that all kind of waste, including any waste of time, are all eliminated.(Naylor et al, 2000:108). The supply chain is defined as a â€Å"system whose constituent parts include material suppliers, production facilities, distribution services and customers†, all of whom are linked together in a cycle where there is a forward flow of materials and a backward flow of feedback. The decoupling point is the one that separates that part of the supply chain that is oriented towards the generation of customer orders from that part which is based on planning. (Naylor et al, 2000:108) Naylor et al (2000) also point out that agile manufacturing is the best suited to meet a market situation where there is fluctuating demand, while lean manufacturing, on the other hand, requires a level schedule but when these two elements are combined with the market knowledge taken into consideration, the decoupling point can be positioned correctly. The legality approach therefore essentially attempts to incorporate lean production methods while also adapting to a fluctuating market.