IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v175y2016icp50-60.html
   My bibliography  Save this article

The optimal decision of customer order decoupling point for order insertion scheduling in logistics service supply chain

Author

Listed:
  • Liu, Weihua
  • Liang, Zhicheng
  • Ye, Zi
  • Liu, Liang

Abstract

Customer demand for order insertions impacts the position of the customer order decoupling point (CODP) in a logistics service supply chain (LSSC). This paper focuses on how the parameters of inserted orders affect the position of the CODP when a logistics service integrator (LSI) is operating a mass customization logistics service. Considering customer demand for orders to be inserted, a CODP decision model for LSSCs is developed based on a two-echelon LSSC consisting of an LSI and several customers. The objectives of the model are to maximize the profit and to ensure the comprehensive satisfaction of the LSI. Conducting numerical analyses on a specific dataset, it was discovered that the scale effect coefficient and service volume of the inserted order have a clear influence on the CODP decision, while the order variation coefficient does not. Furthermore, the LSI will not accept an inserted order when the inserted order has a high variation coefficient or a low price.

Suggested Citation

  • Liu, Weihua & Liang, Zhicheng & Ye, Zi & Liu, Liang, 2016. "The optimal decision of customer order decoupling point for order insertion scheduling in logistics service supply chain," International Journal of Production Economics, Elsevier, vol. 175(C), pages 50-60.
    • Handle: RePEc:eee:proeco:v:175:y:2016:i:c:p:50-60
    DOI: 10.1016/j.ijpe.2016.01.021
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527316000347
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2016.01.021?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Duron, C. & Ould Louly, M.A. & Proth, J.-M., 2009. "The one machine scheduling problem: Insertion of a job under the real-time constraint," European Journal of Operational Research, Elsevier, vol. 199(3), pages 695-701, December.
    2. 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.
    3. 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.
    4. Cacchiani, Valentina & Caprara, Alberto & Toth, Paolo, 2010. "Scheduling extra freight trains on railway networks," Transportation Research Part B: Methodological, Elsevier, vol. 44(2), pages 215-231, February.
    5. Leeflang, P.S.H. & Wittink, Dick R., 2000. "Building models for marketing decisions: past, present and future," Research Report 00F20, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    6. repec:dgr:rugsom:00f20 is not listed on IDEAS
    7. Fogliatto, Flavio S. & da Silveira, Giovani J.C. & Borenstein, Denis, 2012. "The mass customization decade: An updated review of the literature," International Journal of Production Economics, Elsevier, vol. 138(1), pages 14-25.
    8. Nicholas G. Hall & Zhixin Liu & Chris N. Potts, 2007. "Rescheduling for Multiple New Orders," INFORMS Journal on Computing, INFORMS, vol. 19(4), pages 633-645, November.
    9. Yao, Jianming & Liu, Liwen, 2009. "Optimization analysis of supply chain scheduling in mass customization," International Journal of Production Economics, Elsevier, vol. 117(1), pages 197-211, January.
    10. Hoogeveen, H. & Lenté, C. & T’kindt, V., 2012. "Rescheduling for new orders on a single machine with setup times," European Journal of Operational Research, Elsevier, vol. 223(1), pages 40-46.
    11. Ruiz, Rubén & Maroto, Concepciøn & Alcaraz, Javier, 2006. "Two new robust genetic algorithms for the flowshop scheduling problem," Omega, Elsevier, vol. 34(5), pages 461-476, October.
    12. Nicholas G. Hall & Chris N. Potts, 2004. "Rescheduling for New Orders," Operations Research, INFORMS, vol. 52(3), pages 440-453, June.
    13. Olhager, Jan & Rudberg, Martin & Wikner, Joakim, 2001. "Long-term capacity management: Linking the perspectives from manufacturing strategy and sales and operations planning," International Journal of Production Economics, Elsevier, vol. 69(2), pages 215-225, January.
    14. Oliveira, Rui Carvalho & Lourenco, Joao Carlos, 2002. "A multicriteria model for assigning new orders to service suppliers," European Journal of Operational Research, Elsevier, vol. 139(2), pages 390-399, June.
    15. Jonsson, Patrik & Kjellsdotter Ivert, Linea, 2015. "Improving performance with sophisticated master production scheduling," International Journal of Production Economics, Elsevier, vol. 168(C), pages 118-130.
    16. Hau L. Lee & Christopher S. Tang, 1997. "Modelling the Costs and Benefits of Delayed Product Differentiation," Management Science, INFORMS, vol. 43(1), pages 40-53, January.
    17. Olhager, Jan, 2003. "Strategic positioning of the order penetration point," International Journal of Production Economics, Elsevier, vol. 85(3), pages 319-329, September.
    18. Zied Jemai & Ayse Sena Eruguz & Evren Sahin & Yves Dallery, 2014. "Optimising reorder intervals and order-up-to levels in guaranteed service supply chains," Post-Print hal-01672392, HAL.
    19. Yong-Wu Zhou & Sheng-Dong Wang, 2011. "Supply Chain Coordination for Newsvendor-Type Products with Two Ordering Opportunities," International Handbooks on Information Systems, in: Tsan-Ming Choi & T.C. Edwin Cheng (ed.), Supply Chain Coordination under Uncertainty, pages 315-343, Springer.
    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. Boon-itt, Sakun & Wong, Chee Yew & Wong, Christina W.Y., 2017. "Service supply chain management process capabilities: Measurement development," International Journal of Production Economics, Elsevier, vol. 193(C), pages 1-11.
    2. Hu, Xiaojian & Wang, Guanxiong & Li, Xiaozheng & Zhang, Yue & Feng, Shuai & Yang, Aifeng, 2018. "Joint decision model of supplier selection and order allocation for the mass customization of logistics services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 120(C), pages 76-95.
    3. Weihua Liu & Enze Bai & Liwei Liu & Wanying Wei, 2017. "A Framework of Sustainable Service Supply Chain Management: A Literature Review and Research Agenda," Sustainability, MDPI, vol. 9(3), pages 1-25, March.
    4. 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.

    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. 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.
    2. Yin, Yunqiang & Cheng, T.C.E. & Wang, Du-Juan, 2016. "Rescheduling on identical parallel machines with machine disruptions to minimize total completion time," European Journal of Operational Research, Elsevier, vol. 252(3), pages 737-749.
    3. Wang, Dujuan & Yin, Yunqiang & Cheng, T.C.E., 2018. "Parallel-machine rescheduling with job unavailability and rejection," Omega, Elsevier, vol. 81(C), pages 246-260.
    4. Hu, Xiaojian & Wang, Guanxiong & Li, Xiaozheng & Zhang, Yue & Feng, Shuai & Yang, Aifeng, 2018. "Joint decision model of supplier selection and order allocation for the mass customization of logistics services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 120(C), pages 76-95.
    5. Qiulan Zhao & Lingfa Lu & Jinjiang Yuan, 2016. "Rescheduling with new orders and general maximum allowable time disruptions," 4OR, Springer, vol. 14(3), pages 261-280, September.
    6. 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.
    7. Wenchang Luo & Taibo Luo & Randy Goebel & Guohui Lin, 2018. "Rescheduling due to machine disruption to minimize the total weighted completion time," Journal of Scheduling, Springer, vol. 21(5), pages 565-578, October.
    8. 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.
    9. 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.
    10. Mihiotis A., 2014. "Management of Supply Chain: X-to-order Concepts vs Make-to-stock Model," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 5(3), pages 30-33, May.
    11. 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).
    12. Ulrich Pferschy & Julia Resch & Giovanni Righini, 2023. "Algorithms for rescheduling jobs with a LIFO buffer to minimize the weighted number of late jobs," Journal of Scheduling, Springer, vol. 26(3), pages 267-287, June.
    13. Wenchang Luo & Rylan Chin & Alexander Cai & Guohui Lin & Bing Su & An Zhang, 2022. "A tardiness-augmented approximation scheme for rejection-allowed multiprocessor rescheduling," Journal of Combinatorial Optimization, Springer, vol. 44(1), pages 690-722, August.
    14. Noroozi, Sayeh & Wikner, Joakim, 2017. "Sales and operations planning in the process industry: A literature review," International Journal of Production Economics, Elsevier, vol. 188(C), pages 139-155.
    15. Yingfeng Zhang & Dong Xi & Haidong Yang & Fei Tao & Zhe Wang, 2019. "Cloud manufacturing based service encapsulation and optimal configuration method for injection molding machine," Journal of Intelligent Manufacturing, Springer, vol. 30(7), pages 2681-2699, October.
    16. 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.
    17. Liu, Zhixin & Lu, Liang & Qi, Xiangtong, 2018. "Cost allocation in rescheduling with machine unavailable period," European Journal of Operational Research, Elsevier, vol. 266(1), pages 16-28.
    18. Akkerman, Renzo & van Donk, Dirk Pieter, 2009. "Product mix variability with correlated demand in two-stage food manufacturing with intermediate storage," International Journal of Production Economics, Elsevier, vol. 121(2), pages 313-322, October.
    19. Olhager, Jan & Prajogo, Daniel I., 2012. "The impact of manufacturing and supply chain improvement initiatives: A survey comparing make-to-order and make-to-stock firms," Omega, Elsevier, vol. 40(2), pages 159-165, April.
    20. Romsdal, Anita & Strandhagen, Jan Ola & Dreyer, Heidi Carin, 2014. "Can Differentiated Production Planning and Control enable both Responsiveness and Efficiency in Food Production?," 2014 International European Forum, February 17-21, 2014, Innsbruck-Igls, Austria 199374, International European Forum on System Dynamics and Innovation in Food Networks.

    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:175:y:2016:i:c:p:50-60. 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.