Strategic Positioning of the Order Penetration Point¶
Olhager, J. (2003). Strategic Positioning of the Order Penetration Point. International Journal of Production Economics, 85(3), 319-329.
Cited by¶
1 citation across 1 artifact.
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Primes¶
- Decoupling Point
- When the upstream regime is asked to be responsive — which it cannot be without losing efficiency — or when the downstream regime is asked to be efficient — which it cannot be without losing responsiveness — the symptom is the same: an operation suffering simultaneously from slow response and high inventory.
This sourceAnalyzes how the position of the order/decoupling point jointly fixes lead time, inventory, and customization across make-to-stock, assemble-to-order, make-to-order, and engineer-to-order strategies, and the consequences of mispositioning.
- When the upstream regime is asked to be responsive — which it cannot be without losing efficiency — or when the downstream regime is asked to be efficient — which it cannot be without losing responsiveness — the symptom is the same: an operation suffering simultaneously from slow response and high inventory.
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