Decoupling point

On the level of material flow, physical properties ofthe network are designed, i.e., decisions upon the existence of plant sites, warehouses and distribution centers, the transportation links between these components and their capacities are made. The decision upon the customer order decoupling point is a good example of how strategic decisions may influence the level of material flow. 

Design for push and pull and push/pull decoupling points. 

Fig. 1.3 Supply chain differentiation of Dell before and after the consideration of customer requirements. DP decoupling point, SC supply chain...

Determining the decoupling point for the whole value network. 

Hence, if the decoupling point is determined for the whole value network, the morphological box for supply chain differentiation will appear as depicted in Fig. 1.16. However, if the decoupling point is defined for each product, this would imply an additional dimension for each product. The third approach, determining the decoupling point for each module level, would add 18 additional dimensions to three products and six content modules. 

The second decision area, the manufacturing area, implies dimensions containing topics concerned with the products. Thus, the number of modules for each product is recorded as well as whether the modules are categorized as noncritical or strategic exploit. Moreover, the process type is recorded (make-to-stock, make-to-order, or engineer-to-order) and it is decided where the decoupling point shall be positioned within the value chain. 

The second characterizing variable is the window for delivery. This variable describes how quickly the supply chain has to and is able to react to demand. Different customer segments, and different products, require varying speed of delivery. In connection with the speed of delivery, a company sets its depth of unfinished products and the position of the decoupling point (Naylor et al. 1999). 

Fig. 3.14 Decoupling point in a supply chain (Mason-Jones et al. 2000)... 

Since the leagile strategy has been defined for product 1 of the computer manufacturer, it is now important to take a closer look at the position of the customer order decoupling point (CODP), which will take place in CM2, but can be considered when looking at the determination of the supply chain strategy. 

Fig. 4.7 Positions of the customer order decoupling point, after Olhager (2003) and Hallgren and Olhager (2006)...

Customer contact point defines decoupling point, efficiency/flexibility focus... 

Supply Chain Strategies and Customer Order Decoupling Point... 

Fig. 4.10 Method to determine the position of the decoupling point and the manufacturing strategy in the supply chain, after Olhager (2003)...

Customer order Engineer Manufacture Assemble decoupling points Deliver ... 

Decoupling point Engineer-to- order Make-to-order Assemble-to- order Make-to-stock ... 

Olhager, J. (2010). The role of the customer order decoupling point in production and supply chain management. Computers in Industry, 61(9), 863-868. 

Rudbeig, M., Wikner, J. (2004). Mass customization in terms of the customer rader decoupling point. Production Planning and Control, 15(A), 445-458. 

Analyzing the product Identification of product groups and their modules Determination of make vs. buy Specifying the decoupling points... 

You have lately worked on improving your operations and supply chain s flexibility (e.g., move the decoupling point downwards the supply chain). 

This part aims at determining the position of the decoupling point within the manufacturing process. Hence, in a first step, five different manufacturing strategies are briefly explained in order to determine the positioning of the decoupling point. 

However, those five manufacturing situations are all related to different positions of the decoupling point. In recent decades the positioning of the decoupling point, sometimes also called the customer order decoupling point (CODP), has become a topic of strategic interest, since the concept highlights the involvement of customer orders. 

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