Impact of the customer demand on order fulfilment strategies based on floating decoupling point: a simulation analysis

Marcos Calle, Pedro L. González-R and Henri Pierreval

International Journal of Production Research, 2016, vol. 54, issue 24, 7359-7373

Abstract: Order Fulfilment Strategies have become more and more popular, thanks to their capability of improving the delivery times and reducing the inventory levels. Among the postponement strategies of Mass Customisation are the Virtual Build-To-Order (VBTO) and i-Virtual Build-To-Order (i-VBTO) systems which are two systems with the ability to serve customers from anywhere in the inventory (Work-in-Process and Finished Goods Inventory) showing an interesting potential of adaptation to the variability of the demand. This study is aimed at testing the suitability of the basis of the i-VBTO system against the VBTO system through the study of the influence of characteristics of demand that are common in real environments. Regarding the contribution of this work, some weaknesses of the VBTO system can be highlighted (e.g. under certain demand conditions it loses the efficiency), and some benefits of the i-VBTO system (e.g. it turns out to be more robust and stable regarding changes in demand than the VBTO system).

Date: 2016
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DOI: 10.1080/00207543.2016.1186295

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