Separation Point Positioning Research, Based On Postponement Strategy For Supply Chain Operations Of Customer Orders

In the present market, how to design and produce the products which can satisfy the various demands of customers is a challenge that companies are in the face of. In the past, companies always used historical demand information to forecast the future demands, and made the production schedules, then performed mass production through Make-To-Stock pattern. Therefore they could have the economies of scale for production and distribution, and shorten customer's waiting time. When the demands forecasted are not accurate, there would be two results for companies. One is that it might increase the inventory costs and the obsolescence risk, the other is that it might be out of stock and decrease the customer service level. Then someone suggests the Make-To-Order pattern for the problems caused by the uncertain market demands. Obviously, it can effectively solve the problems, but it also means that companies would sacrifice the economies of scale for production and distribution, and lengthen customer's waiting time.Recently, people gradually attach more importance to postponement strategy, which actually is the mixture by MTS pattern and MTO pattern. It makes the manufacturing system to be two stages: common stage and distinct stage. In common stage, companies used the forecasted demands to produce large-scale various common modules for scale economy through MTS pattern; in the distinct stage, companies use demands of orders to assemble effectively various modules, or to process these modules by customer's order through MTO pattern, and these will shorten customer's waiting time and decrease inventory costs.Obviously, where to dividing line between common stage and distinct stage is the key subject for postponement strategy, which we call "Customer Order Decoupling Point". The accurate point for CODP is the key subject for effective performance of common stage and distinct stage. And it also is the key point for successful performance of postponement strategy.This paper focuses on location of CODP, and makes some studies under several postponement strategies in supply chain. The main research works are as follows:1. It researches the location of CODP in the manufacturing operation postponement through qualitative and quantitative methods. First, it analyses the relations between location of CODP and seven factors, and five manufacturing stages. Then considering the past models, it makes great improvement and formulates relevant quantitative models.2. It analyses the location of CODP in the manufacturing place postponement. First, it studies the influence of the location of CODP for transport costs, inventory costs and others costs, then formulates the relevant models and makes the figure of decision framework.3. It analyses the location of CODP in the logistics postponement. It draws the CODP into logistics distribution, and formulates a postponement system of two-level distribution center, and makes the quantitative analysis.4. It uses the cases to verify the relevant models.