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Positioning multiple decoupling points in a supply network

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  • 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
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    2. 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.
    3. 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.
    4. 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).
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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).

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