The responsive reply chain: the influence of the positioning of decoupling points

Manufacturing supply chains have been challenged by high competition, dynamic, and stochastic conditions. They have to be constantly responsive in today’s ever-changing manufacturing environment. The proper positioning of decoupling points for material flow and information flow has a significant potential for increasing responsiveness in a supply chain. Positioning the material decoupling point as close to the end consumer as possible whilst the information decoupling point is positioned upstream is the key to the industries’ ability to reduce lead time and enhance performance in the dynamic behaviour of the supply chain. [Continues.]