Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Dynamic implications of customer order decoupling point positioning

Dynamic implications of customer order decoupling point positioning 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Manufacturing Technology Management Emerald Publishing

Dynamic implications of customer order decoupling point positioning

Download PDF
11 pages

Loading next page...
 
/lp/emerald-publishing/dynamic-implications-of-customer-order-decoupling-point-positioning-ltSSiwRZcJ

References (25)

Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
1741-038X
DOI
10.1108/17410381111177476
Publisher site
See Article on Publisher Site

Abstract

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.

Journal

Journal of Manufacturing Technology Management – Emerald Publishing

Published: Oct 25, 2011

Keywords: Supply chain management; Assembly; Order systems; System dynamics; Customer order decoupling point; Assembly to order

There are no references for this article.