Positioning multiple decoupling points in a supply network
AbstractA decoupling point is the boundary between make-to-order (MTO) and make-to-stock (MTS). Many researchers have discussed the decoupling point in a serial supply chain. In reality, a product consists of many parts and components, and, consequently, their supplies form a supply network instead of a supply chain. This paper positions multiple decoupling points of a product in a complicated supply network instead of a supply chain. Based on the bill of materials (BOM) of a product, a mathematical model is developed in order to find the multi-decoupling points in the supply network through MTO and MTS integration, with the objective of minimizing the overall cost subject to satisfying customer delivery time. The results show that the hybrid strategy is better than a pure MTO or MTS strategy in a dynamic supply network and tight delivery deadline environment. Based on the mathematical model and its solution, the mutual impact between the multiple decoupling points in the supply network is investigated through sensitivity analysis. Finally, this paper makes multiple decoupling points more understandable.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal International Journal of Production Economics.
Volume (Year): 113 (2008)
Issue (Month): 2 (June)
Contact details of provider:
Web page: http://www.elsevier.com/locate/ijpe
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- S. Rajagopalan, 2002. "Make to Order or Make to Stock: Model and Application," Management Science, INFORMS, vol. 48(2), pages 241-256, February.
- Kim, Ilhyung & Tang, Christopher S., 1997. "Lead time and response time in a pull production control system," European Journal of Operational Research, Elsevier, vol. 101(3), pages 474-485, September.
- van Donk, Dirk Pieter, 2001. "Make to stock or make to order: The decoupling point in the food processing industries," International Journal of Production Economics, Elsevier, vol. 69(3), pages 297-306, February.
- Soman, Chetan Anil & van Donk, Dirk Pieter & Gaalman, Gerard, 2004. "Combined make-to-order and make-to-stock in a food production system," International Journal of Production Economics, Elsevier, vol. 90(2), pages 223-235, July.
- Kisperska-Moron, Danuta, 2003. "Responsibilities for inventory decisions in Polish manufacturing companies," International Journal of Production Economics, Elsevier, vol. 81(1), pages 129-139, January.
- Li, D. & O'Brien, C., 2001. "A quantitative analysis of relationships between product types and supply chain strategies," International Journal of Production Economics, Elsevier, vol. 73(1), pages 29-39, August.
- van der Vlist, Piet & Hoppenbrouwers, Jurgen J. E. M. & Hegge, Herman M. H., 1997. "Extending the enterprise through multi-level supply control," International Journal of Production Economics, Elsevier, vol. 53(1), pages 35-42, November.
- Olhager, Jan & Ostlund, Bjorn, 1990. "An integrated push-pull manufacturing strategy," European Journal of Operational Research, Elsevier, vol. 45(2-3), pages 135-142, April.
- Hull, Bradley, 2005. "The role of elasticity in supply chain performance," International Journal of Production Economics, Elsevier, vol. 98(3), pages 301-314, December.
- Hsu, Hsi-Mei & Wang, Wen-Pai, 2004. "Dynamic programming for delayed product differentiation," European Journal of Operational Research, Elsevier, vol. 156(1), pages 183-193, July.
- Olhager, Jan, 2003. "Strategic positioning of the order penetration point," International Journal of Production Economics, Elsevier, vol. 85(3), pages 319-329, September.
- Chang, Sheng-Hung & Pai, Ping-Feng & Yuan, Kuo-Jung & Wang, Bo-Chang & Li, Rong-Kwei, 2003. "Heuristic PAC model for hybrid MTO and MTS production environment," International Journal of Production Economics, Elsevier, vol. 85(3), pages 347-358, September.
- Jeong, In-Jae, 2011. "A dynamic model for the optimization of decoupling point and production planning in a supply chain," International Journal of Production Economics, Elsevier, vol. 131(2), pages 561-567, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.