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The Role of Decoupling Points in Value Chain Management

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Modelling Value

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

Abstract

All supply chains are not the same. A key factor that affects the design and management of a value chain is the position of the customer order decoupling point; some products are produced to order (e.g. configured to particular customer needs) while others are produced to stock (typically standard products). The customer order decoupling point (CODP) identifies the point in the material flow where the product is linked to a specific customer. This paper discusses the impact of having the decoupling point at different positions, and the distinguishing features for value chain operations upstream the decoupling point (i.e. towards the supplier) versus those downstream the decoupling point (i.e. towards the ultimate customer). Based on these differences, we explore the implication of the CODP on the modelling of value.

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Author information

Authors and Affiliations

  1. Department of Management and Engineering, Linköping University, Linköping, Sweden

    Jan Olhager

Authors
  1. Jan Olhager
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Correspondence to Jan Olhager .

Editor information

Editors and Affiliations

  1. FH Oberösterreich, Wehrgrabengasse 1-3, Steyr, 4400, Austria

    Herbert Jodlbauer

  2. , Department of Management, Linköping University, Linköping, 58183, Sweden

    Jan Olhager

  3. Schonberger & Associates, 107th Avenue N.E. #2101 177, Bellevue, 98004, Washington, USA

    Richard J. Schonberger

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Olhager, J. (2012). The Role of Decoupling Points in Value Chain Management. In: Jodlbauer, H., Olhager, J., Schonberger, R. (eds) Modelling Value. Contributions to Management Science. Physica-Verlag HD. https://doi.org/10.1007/978-3-7908-2747-7_2

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