Lee’s Framework: Efficient vs Responsive

Supply Chains

Table 7.1 summarizes Lee’s framework.

Recall the distinction between established and innovative products that was discussed in Session 4.

Functional Innovative
(established) products
products
(short life-
(stable, low cycle, high
margin, low margin, high
variety) variety)

Efficient supply chain MATCH MISMATCH

(focused on minimal cost, high utilization rate,

dedicated processes and resources)

Responsive supply chain(focused on fast market MISMATCH MATCH

response, deliberately low utilization, highly flexible
processes and resources)

Table 7.1