LEAGILITY and PARETO: Increasing Services Level through a Combination of LEAGILITY and ABC Curve

Vinicius Zomkowski Salvi and Sergio Fernando Mayerle

Business and Management Research, 2014, vol. 3, issue 2, 81-92

Abstract: The first decade of that century started to discuss Agile and Leagility more intensively. This paper follows the flow and wants to demonstrate how to use Pareto and Leagility concepts to create supply chain models. Analysing data from a multinational food company, it was able to show measures that can be taken by the firm for minimizing waste, being more responsive or both. After a literature review about Lean, Agile and manly Leagility, utilizing manly medium and high impact factor articles (ISI), this paper collected data from more than 700 skus of a huge company of chicken production, classified those in general ABC classification and also in ABC for each category.This article gave examples of waste for the A curve of the studied company. With same proposal, it appeared to be reasonable to offer a methodology for that B items, specially that one whose demand is more volatile than A curves items, but its productions need to keep being done by forecast and demand planning. At least, original C curve was divided into two- Items with huge gross margin sales and items with small gross margin.

Date: 2014
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