Lean/agile Supply in Wire Logistics

Abstract

The stability of competing modern supply systems (which are rathernetworks than chains) is becoming crucial. Lean thinking led to wasteelimination and inventory reduction alongside the chain, but in extendedintercontinental supply networks there are uncertainties in production anddistribution processes, and also in commercial activities. The growing needto accommodate variety and demand uncertainty has resulted in theemergence of the concept of agility, closely associated with quick response.Lean/agile type logistics systems have analogues in the water- andelectricity supply. These systems were traditionally developed to follow thedemand fluctuation with oversizing the infrastructure: water supply workswith protective inventories at different levels (reservoirs, water towers)while electricity supply applies protective capacities in power generation(fleet of power stations with different characteristics and costs) inproviding the security of supply on marginal parameters. Thecharacteristics of different wire-supply systems request different types ofhybridization (which will be technically possible in the near future) toprevent system failures. The investigation confirms the strong need fordeveloping better demand-management tools (according to the real natureof consumption) and the importance of decoupling points in order toachieve an appropriate design of a given supply system.