Position Of Customer Order Decoupling Point Research Articles

Connecting organizational context to environmental sustainability initiatives and industrial symbiosis: Empirical results and case analysis

Industrial symbiosis can move us closer to a circular economy and enable efficient and sustainable use of resources. Its potential has however been far from realized, and to increase our understanding of why that is, we investigate drivers, barriers, and outcomes associated with both broadly defined environmental sustainability initiatives and industrial symbiosis from an organizational context perspective. A mixed-methods approach is used, combining statistical analysis of survey material with an embedded case study at an industrial symbiosis network in Sotenäs, Sweden. The position of the customer order decoupling point (CODP), a critical aspect of supply chains that separates forecast-based operations from those tied to specific orders, enables comparisons between organizations with primarily forecast-driven operations from those with primarily order-driven operations. We find that the CODP plays an important role in organizations' commitments to sustainability initiatives in general, as organizations with different CODP positions experience different levels of benefits from such initiatives. We did not find that the CODP position had the same impact for industrial symbiosis initiatives. Our results indicate that both industrial symbiosis, a very specific type of sustainability initiative and collaboration, and environmental sustainability initiatives in a broad sense, are associated with multiple, positive business outcomes. However, case study participants also described that their industrial symbiosis participation was time consuming and associated with an added administrative burden. This could be a reason why such collaborations are not more prevalent, despite the potential of bringing about several positive business outcomes. Finally, our findings indicate that industrial symbiosis may bring business-related benefits to firms regardless of their CODP position, but then in order to understand why such networks are not more prevalent, we recommend that future research investigates ways of quantifying and distributing burdens and rewards associated with industrial symbiosis collaboration.

Joint optimization decision of service provider selection and CODP positioning based on mass customization in a cloud logistics environment

PurposeBy introducing the mass customization service mode into the cloud logistics environment, this paper studies the joint optimization of service provider selection and customer order decoupling point (CODP) positioning based on the mass customization service mode to provide customers with more diversified and personalized service content with lower total logistics service cost.Design/methodology/approachThis paper addresses the general process of service composition optimization based on the mass customization mode in a cloud logistics service environment and constructs a joint decision model for service provider selection and CODP positioning. In the model, the two objective functions of minimum service cost and most satisfactory delivery time are considered, and the Pareto optimal solution of the model is obtained via the NSGA-II algorithm. Then, a numerical case is used to verify the superiority of the service composition scheme based on the mass customization mode over the general scheme and to verify the significant impact of the scale effect coefficient on the optimal CODP location.Findings(1) Under the cloud logistics mode, the implementation of the logistics service mode based on mass customization can not only reduce the total cost of logistics services by means of the scale effect of massive orders on the cloud platform but also make more efficient use of a large number of logistics service providers gathered on the cloud platform to provide customers with more customized and diversified service content. (2) The scale effect coefficient directly affects the total cost of logistics services and significantly affects the location of the CODP. Therefore, before implementing the mass customization logistics service mode, the most reasonable clustering of orders on the cloud logistics platform is very important for the follow-up service combination.Originality/valueThe originality of this paper includes two aspects. One is to introduce the mass customization mode in the cloud logistics service environment for the first time and summarize the operation process of implementing the mass customization mode in the cloud logistics environment. Second, in order to solve the joint decision optimization model of provider selection and CODP positioning, this paper designs a method for solving a mixed-integer nonlinear programming model using a multi-layer coding genetic algorithm.

A Fuzzy Programming Model for Positioning Customer Order Decoupling Point Based on QFD in Logistics Service with Mass Customization

Mass customization logistics service mode provides a new way to maintain the sustainable cooperative relationship between customers and integrators. One of the key factors to maintain the sustainable development of logistics service supply chain under MC mode is to locate a suitable customer order decoupling point (CODP) location. This paper investigates the problem of CODP in the logistics service supply chain based on the fuzzy set theory under the mass customization mode. With the help of a fuzzy QFD method and a new service quality function that we constructed, this paper quantifies the quality of a logistics service when the LSI selects a different CODP. Then, the fuzzy set of the high-quality logistics service and the fuzzy set of the satisfactory delivery time are built. Based on those two new fuzzy sets, this paper builds a new fuzzy programming model on CODP positioning. The solving methods of this model under different conditions are given. Finally, the influence of some important parameters on the optimal CODP position is studied by sensitivity analysis on a specific numerical case.

A Framework for Designing the Customer-Order Decoupling Point to Facilitate Mass Customization

Abstract In the age of Industry 4.0, manufacturing enterprises are under pressure to improve mass customization to satisfy evolving demands in different markets. One challenge is to fulfill orders swiftly at an acceptable cost, while maintaining service quality. To do this, the customer-order decoupling point (CODP), where value-adding activities take place, should be designed and adapted to changing market demands. We propose a formulation-exploration framework to make decisions on customer-order decoupling point positioning and improve the supply chain to support mass customization. A test problem of auto parts manufacturing is used to illustrate the efficacy of our framework. The formulation-exploration framework can be used to design a supply chain to facilitate the mass customization of products, especially when information is incomplete and inaccurate (including uncertainties), and goals conflict with each other. In this paper, we focus on the method embodied in the framework rather than the results per se.

Positioning push–pull boundary in a hesitant fuzzy environment

AbstractNowadays, fierce competition enforces supply chain planners to develop market‐oriented production strategies. Customer order decoupling point (CODP) could increase the supply chain efficiency and responsiveness simultaneously. The right position of CODP in production industries will result in a pattern for trade‐off between responsiveness and operational efficiency. The purpose of this paper is to address the positioning problem of a push‐pull boundary in a fuzzy hesitant environment. To this end, a hybrid multi‐criteria decision‐making methodology of analytic network process (ANP) and VIKOR is proposed in a hesitant judgement environment to determine the position of CODP in a supply chain. Finally, CODP positioning in the apparel supply chain, as an industry‐based example, is analysed to show the applicability of the proposed method.

Decision model of customer order decoupling point on multiple customer demands in logistics service supply chain

The key factor in realising competitiveness of a logistics service supply chain (LSSC) is its ability to meet customised requirements with the cost of mass service. This paper introduces the concepts of mass customisation and customer order decoupling point (CODP) into the field of logistics service to solve the problem of CODP when a logistics service integrator (LSI) in an LSSC operates under mass customisation. Two models of CODP decision, respectively, on single and multiple customer demands, are developed. Both process constraints and lead time constraints from the customised logistics service orders are considered. Unlike CODP positioning models within the manufacturing supply chain, the objective of this paper is to exclusively consider the cost of order transferring and order waiting at CODP to minimise total cost of the LSI. The applications of the two models are also discussed by two real cases, and three major conclusions are drawn. First, introducing mass customisation into an LSSC and minimising total cost of order processing of the LSI by selecting an optimised CODP is feasible. Second, total cost will decrease monotonously along with the movement of CODP toward the last service procedure under the precondition of satisfying lead time constraints. Third, parameters about the customers’ logistics service orders will bring about great influence on the selection of CODP. For instance, the lead time of orders will influence the number of feasible CODPs and the position of optimal CODP. Also, decreasing cost of order transferring and order waiting will not cause the change of optimal CODP, while increasing cost of order transferring and order waiting will lead to the switch of optimal CODP.

Analyzing Single and Multiple Customer Order Decoupling Point Positioning based on Customer Value: A Multi-objective Approach

First step for the implementation of MC is to determine the desired level of product variety offered to customers (or customization degree). The right decision on the position of Customer Order Decoupling Point (CODP) is critical to determine the level of customization.. In this model, we develop two objective bases on company's profit and customer values perceived and analyze impacts single-CODP and multiple-CODP on product variety with trade offing among two proposed objective under service time constraint. We validate the model through a case.

A two-stage queueing network on form postponement supply chain with correlated demands

To ease the conflict between quick response and product variety, more and more business models are developed in supply chains. Among these, the form postponement (FP) strategy is an efficient tool and has been widely adopted. To the supply chain with FP strategy, the design mostly involves two problems: determination of customer order decoupling point (CODP) position and semi-finished product inventory control. In this paper, we develop a two-stage tandem queueing network with MAP arrival to address this issue. Particularly, we introduce a Markov arrival process (MAP) to characterize the correlation of the demand. By using of matrix geometric method, we derive several performance measure of the supply chain, such as inventory level and unfill rate. Our numerical examples show that both the variance and the correlation coefficient of the demand lead to more delayed CODP position and more total cost.

Product-Customization and Payment Policy with Postponement Strategy

Manufacturers adopting postponement strategy can lower operational cost and quickly respond customers’ personalized demands. Adopting postponement strategy, however, has often led manufacturers to situations of higher risk of holding exclusive material in the customization stage. For example, customers prefer to order flexibly from manufacturers so as to be able to respond flexibly to their custom changes. Manufacturers, on the other hand, prefer customers to place full orders as early as possible so that they can hedge against the risks of under-production, especially in the customer order decoupling point (CODP) downstream. Motivated by this problem, we model a dynamic cost model in this paper to evaluate the risks and benefits. Using the Logistic curve, we develop a payment policy for manufacturer adopting postponement strategy in the CODP downstream. Our research demonstrates that, compared with the payment policy of product completed, payment in stages according to product-customization can coordinate conflict between manufacturers and customers in the process of adopting postponement strategy manufacturing system. We also discuss variation of CODP positioning, total cost and payment when rate of return changes.

Dynamic implications of customer order decoupling point positioning

PurposeThe 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/approachA generic assembly‐to‐order system dynamics simulation model is developed and used to evaluate the dynamic consequences of shifting the CODP.FindingsPlacing 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/implicationsThe 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 implicationsDownstream shifting of the CODP has been identified as a powerful way to reduce variability in assembly‐to‐order systems.Originality/valueThis paper introduces the dynamic consequences of CODP location, providing a new perspective that should be considered when positioning the CODP.

Three-dimensional model of customer order decoupling point position in mass customisation

(2010). Three-dimensional model of customer order decoupling point position in mass customisation. International Journal of Production Research: Vol. 48, No. 13, pp. 3741-3757.

Study on CODP Position of Process Industry Implemented Mass Customization

Abstract As the core strategy of MC (Mass Customization), CODP (Customer Order Decoupling Point) positioning of the process industry implemented mass customization is the focus of this article. The article builds a CODP positioning model with the delivery lead time constraint and capacity constraint, aiming at total cost minimization. Based on the analytical and numerical comparisons conducted by MATLAB, this article presents 4 inferences and 4 observations and gains insights on how various factors affect the CODP position.