January 2023
Intermediate to advanced
250 pages
11h 7m
English
Content preview from Logistics and Supply Chain Management, 6th Edition
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The decoupling point
A related concept to the demand penetration point is the principle of the decoupling point. The purpose of a decoupling point is to separate adjacent processes so that they can operate independently of each other.1 Processes can be decoupled by placing a ‘buffer’ between them. These buffers may comprise inventory or they could be in the form of capacity or time. There may be more than one decoupling point in a supply chain and hence more than one buffer.
The purpose of these buffers is to enable demand to be met within the required lead-time (i.e. within the customer’s order cycle). The size of these buffers, i.e. how much inventory, how much capacity and how much time is allowed, should be constantly reviewed in light of ...
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