Managing Customer Order Decoupling Points in Supply Chains

Jan Olhager () and Dirk Pieter Donk ()
Additional contact information
Jan Olhager: Lund University
Dirk Pieter Donk: University of Groningen

A chapter in The Palgrave Handbook of Supply Chain Management, 2024, pp 1115-1137 from Springer

Abstract: Abstract The concept of a customer order decoupling point (CODP) has been discussed since 1984. The CODP refers to the point in the supply chain at which a product is linked to a specific customer. Consequently, make to stock (MTS), assemble to order (ATO), make to order (MTO), purchase and make to order (PMTO), and engineer to order (ETO) all refer to different positions of the CODP. The CODP separates the operations downstream of the CODP that are based on actual customer orders from those upstream that are forecast driven. We discuss the strategic importance of the CODP and the characteristics of upstream versus downstream operations. The CODP concept is applicable to all industries, and we illustrate it with examples from the food processing and service industries. We discuss how the CODP relates to bottlenecks, the product life cycle, leagility, mass customization, modular product designs, and postponement. With respect to the differentiating features of upstream versus downstream, the CODP is an important contingency variable for many operations and supply chain management areas, including performance measurement. We conclude this chapter with a discussion on theoretical perspectives.

Keywords: Contingency; Customer order; Decoupling; Leagility; Mass customization; Modular design; Postponement (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-19884-7_103

Ordering information: This item can be ordered from
http://www.springer.com/9783031198847

DOI: 10.1007/978-3-031-19884-7_103

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().