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Dynamic implications of customer order decoupling point positioning
University of Skövde, School of Technology and Society. University of Skövde, The Systems Biology Research Centre.ORCID iD: 0000-0002-0382-1387
University of Skövde, School of Technology and Society. University of Skövde, The Virtual Systems Research Centre.ORCID iD: 0000-0003-0111-1776
2011 (English)In: Journal of Manufacturing Technology Management, ISSN 1741-038X, E-ISSN 1758-7786, Vol. 22, no 8, 1032-1042 p.Article in journal (Refereed) Published
Abstract [en]

Purpose: The positioning of the customer order decoupling point (CODP) is an important strategic consideration for supply chains. Recently, research has focused only on the static effects of CODP positioning. The purpose of this paper is to expand the body of knowledge by describing the dynamic consequences that arise from shifting the CODP upstream or downstream.

Design/methodology/approach: A generic assembly-to-order system dynamics simulation model is developed and used to evaluate the dynamic consequences of shifting the CODP.

Findings: Placing the CODP downstream allows for short-term fluctuations in demand to be absorbed by the order book, leading to a stable production rate and inventory response. This benefit must, however, be weighed against any additional safety stock a CODP placed far downstream may require.

Research limitations/implications: The paper demonstrates the importance of considering the dynamic aspects of CODP positioning. Further research should investigate the phenomenon for different demand scenarios and supply chain configurations.

Practical implications: Downstream shifting of the CODP has been identified as a powerful way to reduce variability in assembly-to-order systems.

Originality/value: This paper introduces the dynamic consequences of CODP location, providing a new perspective that should be considered when positioning the CODP.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2011. Vol. 22, no 8, 1032-1042 p.
Keyword [en]
Supply chain management, Assembly, Order systems, System dynamics, Customer order decoupling point, Assembly to order
National Category
Engineering and Technology
Research subject
Technology
Identifiers
URN: urn:nbn:se:his:diva-5833DOI: 10.1108/174110381111177476Scopus ID: 2-s2.0-80455178815OAI: oai:DiVA.org:his-5833DiVA: diva2:524721
Available from: 2012-05-03 Created: 2012-05-03 Last updated: 2015-12-18Bibliographically approved

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CiteExportLink to record
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Citation style
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