Decoupling Point Control
Henny Van Ooijen, Corné Dirne · 2024
This chapter discusses several aspects that are relevant regarding the control of decoupling points in supply chains. It elaborates on decoupling point control (DPC) and gives a classification of the different control situations that can be distinguished on this level. The chapter provides a closer look at the performance measures that can be used to evaluate the performance of the decisions taken at DPC. In many approaches in scientific research, the main performance measure considered when discussing inventory control is profit maximization or cost minimization. Using such a performance measure makes it possible to focus on a single performance indicator (i.e. profit or cost). The chapter presents a study of the volume of parts to be processed through the production system and the translation of that volume into order sizes. It discusses the demand pattern, including the predictability of the demand, and some of the more common time-series forecasting models.