IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v113y2008i2p943-956.html
   My bibliography  Save this article

Positioning multiple decoupling points in a supply network

Author

Listed:
  • Sun, X.Y.
  • Ji, P.
  • Sun, L.Y.
  • Wang, Y.L.

Abstract

A 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.

Suggested Citation

  • Sun, X.Y. & Ji, P. & Sun, L.Y. & Wang, Y.L., 2008. "Positioning multiple decoupling points in a supply network," International Journal of Production Economics, Elsevier, vol. 113(2), pages 943-956, June.
    • Handle: RePEc:eee:proeco:v:113:y:2008:i:2:p:943-956
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925-5273(07)00358-1
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. Hull, Bradley, 2005. "The role of elasticity in supply chain performance," International Journal of Production Economics, Elsevier, vol. 98(3), pages 301-314, December.
    6. 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.
    7. Christian van Delft & K. Hadj Youssef, 2004. "Efficient Scheduling Rules in a Combined Make-to-Stock and Make-to-Order Manufacturing System," Post-Print hal-00471415, HAL.
    8. 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.
    9. 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.
    10. Khaled Hadj Youssef & Christian Van Delft & Yves Dallery, 2004. "Efficient Scheduling Rules in a Combined Make-to-Stock and Make-to-Order Manufacturing System," Annals of Operations Research, Springer, vol. 126(1), pages 103-134, February.
    11. 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.
    12. 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.
    13. Olhager, Jan, 2003. "Strategic positioning of the order penetration point," International Journal of Production Economics, Elsevier, vol. 85(3), pages 319-329, September.
    14. S. Rajagopalan, 2002. "Make to Order or Make to Stock: Model and Application," Management Science, INFORMS, vol. 48(2), pages 241-256, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Surbhi Upadhyay & Suresh Kumar Garg & Rishu Sharma, 2023. "Analyzing the Factors for Implementing Make-to-Order Manufacturing System," Sustainability, MDPI, vol. 15(13), pages 1-22, June.
    2. Cannas, Violetta G. & Gosling, Jonathan & Pero, Margherita & Rossi, Tommaso, 2019. "Engineering and production decoupling configurations: An empirical study in the machinery industry," International Journal of Production Economics, Elsevier, vol. 216(C), pages 173-189.
    3. Zhiming Shi & Yisong Li & Gábor Bohács & Qiang Zhou, 2022. "A Study on Optimal Location Selection and Semi-Finished Product Inventory Allocation in the Steel Industry," Sustainability, MDPI, vol. 14(22), pages 1-21, November.
    4. Ng, Irene & Scharf, Kimberley & Pogrebna, Ganna & Maull, Roger, 2015. "Contextual variety, Internet-of-Things and the choice of tailoring over platform: Mass customisation strategy in supply chain management," International Journal of Production Economics, Elsevier, vol. 159(C), pages 76-87.
    5. de Keizer, Marlies & Akkerman, Renzo & Grunow, Martin & Bloemhof, Jacqueline M. & Haijema, Rene & van der Vorst, Jack G.A.J., 2017. "Logistics network design for perishable products with heterogeneous quality decay," European Journal of Operational Research, Elsevier, vol. 262(2), pages 535-549.
    6. Hassani Youssef & Ceauşu Ioana & Iordache Adrian, 2020. "Lean and Agile model implementation for managing the supply chain," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 14(1), pages 847-858, July.
    7. Schoenwitz, Manuel & Potter, Andrew & Gosling, Jonathan & Naim, Mohamed, 2017. "Product, process and customer preference alignment in prefabricated house building," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 79-90.
    8. Wikner, Joakim & Naim, Mohamed M. & Spiegler, Virginia L.M. & Lin, Junyi, 2017. "IOBPCS based models and decoupling thinking," International Journal of Production Economics, Elsevier, vol. 194(C), pages 153-166.
    9. Iman Ghalehkhondabi & Dusan Sormaz & Gary Weckman, 2016. "Multiple customer order decoupling points within a hybrid MTS/MTO manufacturing supply chain with uncertain demands in two consecutive echelons," OPSEARCH, Springer;Operational Research Society of India, vol. 53(4), pages 976-997, December.
    10. Bouzekri, Hamza & Bara, Najat & Alpan, Gülgün & Giard, Vincent, 2022. "An integrated Decision Support System for planning production, storage and bulk port operations in a fertilizer supply chain," International Journal of Production Economics, Elsevier, vol. 252(C).
    11. Shouyao Xiong & Yuanyuan Feng & Kai Huang, 2020. "Optimal MTS and MTO Hybrid Production System for a Single Product Under the Cap-And-Trade Environment," Sustainability, MDPI, vol. 12(6), pages 1-16, March.
    12. Cannas, Violetta G. & Gosling, Jonathan & Pero, Margherita & Rossi, Tommaso, 2020. "Determinants for order-fulfilment strategies in engineer-to-order companies: Insights from the machinery industry," International Journal of Production Economics, Elsevier, vol. 228(C).
    13. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Beemsterboer, Bart & Land, Martin & Teunter, Ruud, 2016. "Hybrid MTO-MTS production planning: An explorative study," European Journal of Operational Research, Elsevier, vol. 248(2), pages 453-461.
    2. Sato, Yutaro & Maeda, Hiroyuki & Toshima, Ryusei & Nagasawa, Keisuke & Morikawa, Katsumi & Takahashi, Katsuhiko, 2023. "Switching decisions in a hybrid MTS/MTO production system comprising multiple machines considering setup," International Journal of Production Economics, Elsevier, vol. 263(C).
    3. Kerkkanen, Annastiina, 2007. "Determining semi-finished products to be stocked when changing the MTS-MTO policy: Case of a steel mill," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 111-118, July.
    4. Beemsterboer, Bart & Land, Martin & Teunter, Ruud & Bokhorst, Jos, 2017. "Integrating make-to-order and make-to-stock in job shop control," International Journal of Production Economics, Elsevier, vol. 185(C), pages 1-10.
    5. Beemsterboer, Bart & Land, Martin & Teunter, Ruud, 2017. "Flexible lot sizing in hybrid make-to-order/make-to-stock production planning," European Journal of Operational Research, Elsevier, vol. 260(3), pages 1014-1023.
    6. Shouyao Xiong & Yuanyuan Feng & Kai Huang, 2020. "Optimal MTS and MTO Hybrid Production System for a Single Product Under the Cap-And-Trade Environment," Sustainability, MDPI, vol. 12(6), pages 1-16, March.
    7. Martínez-Olvera, César, 2009. "Benefits of using hybrid business models within a supply chain," International Journal of Production Economics, Elsevier, vol. 120(2), pages 501-511, August.
    8. Beemsterboer, Bart & Land, Martin & Teunter, Ruud & Bokhorst, Jos, 2017. "Reprint of “Integrating make-to-order and make-to-stock in job shop control”," International Journal of Production Economics, Elsevier, vol. 194(C), pages 3-12.
    9. Akkerman, Renzo & van Donk, Dirk Pieter, 2007. "Product prioritization in a two-stage food production system with intermediate storage," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 43-53, July.
    10. Sharda, Bikram & Akiya, Naoko, 2012. "Selecting make-to-stock and postponement policies for different products in a chemical plant: A case study using discrete event simulation," International Journal of Production Economics, Elsevier, vol. 136(1), pages 161-171.
    11. Gunasekaran, Angappa & Ngai, Eric W.T., 2009. "Modeling and analysis of build-to-order supply chains," European Journal of Operational Research, Elsevier, vol. 195(2), pages 319-334, June.
    12. Wikner, Joakim & Naim, Mohamed M. & Spiegler, Virginia L.M. & Lin, Junyi, 2017. "IOBPCS based models and decoupling thinking," International Journal of Production Economics, Elsevier, vol. 194(C), pages 153-166.
    13. Helia Yousefnejad & Maryam Esmaeili, 2020. "Tactical production planning in a hybrid MTS/MTO system using Stackelberg game," Operational Research, Springer, vol. 20(3), pages 1791-1809, September.
    14. Zhang, Zhe George & Kim, Ilhyung & Springer, Mark & Cai, Gangshu (George) & Yu, Yugang, 2013. "Dynamic pooling of make-to-stock and make-to-order operations," International Journal of Production Economics, Elsevier, vol. 144(1), pages 44-56.
    15. Fernandes, Nuno O. & Silva, Cristóvão & Carmo-Silva, S., 2015. "Order release in the hybrid MTO–FTO production," International Journal of Production Economics, Elsevier, vol. 170(PB), pages 513-520.
    16. Pereira, Daniel Filipe & Oliveira, José Fernando & Carravilla, Maria Antónia, 2022. "Merging make-to-stock/make-to-order decisions into sales and operations planning: A multi-objective approach," Omega, Elsevier, vol. 107(C).
    17. Luo, Hao & Yang, Xuan & Kong, Xiang T.R., 2019. "A synchronized production-warehouse management solution for reengineering the online-offline integrated order fulfillment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 211-230.
    18. Olhager, Jan, 2003. "Strategic positioning of the order penetration point," International Journal of Production Economics, Elsevier, vol. 85(3), pages 319-329, September.
    19. Iman Ghalehkhondabi & Ehsan Ardjmand & Gary Weckman, 2017. "Integrated decision making model for pricing and locating the customer order decoupling point of a newsvendor supply chain," OPSEARCH, Springer;Operational Research Society of India, vol. 54(2), pages 417-439, June.
    20. Calle, Marcos & González-R, Pedro L. & Leon, Jose M. & Pierreval, Henri & Canca, David, 2016. "Integrated management of inventory and production systems based on floating decoupling point and real-time information: A simulation based analysis," International Journal of Production Economics, Elsevier, vol. 181(PA), pages 48-57.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:113:y:2008:i:2:p:943-956. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.