A theoretical framework for postponement concept in a supply chain

Ferreira, Karine Araujo; Tomas, Robson Nogueira; Alcântara, Rosane Lúcia Chicarelli

doi:10.1080/13675567.2014.945403

Cited by 25 publications

(18 citation statements)

References 40 publications

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“…In this context, most of manufacturers bear more and more competitive pressure and, necessarily, are seeking new business strategies that can quickly respond to customized demands. Currently, postponement strategy is a kind of popular and key operations management method in the world [1]. The basic idea of postponement strategy is originally keeping parts in their standard form before customer order decoupling point, when specific demands are known, the standard parts are customized according to customer requirements, whereby manufacturers can meet various and unique customer demands.…”

Section: Introductionmentioning

confidence: 99%

Operations mechanism of postponement strategy for service-oriented manufacturing

Jian-qiang

Zhang

2018

Int J Adv Manuf Technol

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With the rapid growth of individualized customer demands, manufacturers are supposed to pay more attention to the interaction between service and product. In this context, the concept called service-oriented manufacturing (SOM) has been promoted. Postponement strategy, while has already been widely studied in manufacturing systems, still lacks being well understood about its operations mechanism for SOM. Therefore, the purpose of this paper is to provide a further insight into an operations mechanism in which SOM can be driven by postponement strategy. Firstly, by analyzing the characteristics of postponement strategy and SOM, the hypothesis that postponement strategy can support SOM is theoretically approved. Then, to better reveal its operations mechanism, an innovative model is constructed. In this model, non-differentiated and differentiated products are compared, service time is introduced as a sensitive factor, and an approach incorporating customer satisfaction is proposed. Taking advantages of these innovation points, the customer order fulfilling time can be easily analyzed in the SOM system applied postponement strategy. The research results show that the cost of customer interaction could be reduced through the adjustment activities before customer order decoupling point, and the degree of product customization could be increased by interactive activities after customer order decoupling point. Both of them would enable manufacturers to better respond to customized demands.

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Section: Introductionmentioning

confidence: 99%

Operations mechanism of postponement strategy for service-oriented manufacturing

Jian-qiang

Zhang

2018

Int J Adv Manuf Technol

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“…Despite the fact that largescale production has been a goal for several industries in order to reduce costs, today's market flexibility requirements make it difficult to achieve this objective [2]. Product flexibility means better manufacturing capacities in the production system, reflected in the ability to produce on a small scale to face highly volatile markets [3], [4].…”

Section: Introductionmentioning

confidence: 99%

“…It is defined as a mass customization strategy, aimed to give a better product experience and quality to customers, besides a wide portfolio under uncertainty conditions [10], [11]. The postponement approach can be applied on multiple fields [3]. From the logistic perspective, product development postponement, purchasing postponement, production postponement, assembly postponement, packaging postponement and logistic postponement are some typical categories of this study field [6], [12].…”

Section: Introductionmentioning

confidence: 99%

“…Production postponement is the target topic of the present paper. Put in a nutshell, the aim of this strategy is to delay the product final assembling and create a work-in-process inventory in order to face the market fluctuations at a lower cost [1], [3]. This production strategy allows increasing the customer penetration point in the production system [6] without affecting, in great manner, the cost reduction goals.…”

Section: Introductionmentioning

confidence: 99%

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Metodología multicriterio para la ubicación del punto de desacople en sistemas de manufactura

Arango

Sarache

2017

inde

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Synchronization between production scheduling and real demand is an issue of great concern for production practitioners and academics. Put in a nutshell, the solution requires the placement of a decoupling point in order to get a trade-off between efficiency and flexibility. In the context of a postponement production strategy, a decoupling point is an inventory buffer to create independence between the process and final demand. Upstream of the decoupling point, the process is managed under a make-to-stock approach; in contrast, downstream operations meet the final demand under a make-to-order approach. In this sense, the present paper proposes a multicriteria methodology to locate decoupling points in manufacturing systems. The methodology consists of two stages, with two and three steps respectively. In the first stage, the decision criteria and alternative for decoupling points are chosen. In the second one, the final decoupling point placement is determined. By applying the methodology in a metalworking company, the location of the decoupling points for nine production lines was obtained.Palabras clave: decoupling point, manufacturing system, methodology, multicriteria, postponement. ISSN: 0122-3461 (impreso) 2145-9371 (on line)

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“…Chiu et al (2016c) further extended the same model of Chiu et al (2016a) with extra features on random scrap rates existence in both regular fabrication and rework processes for both common part's and end products' fabrication stages using single-machine production scheme. Prior literatures regarding different aspects of the postponement strategy used in multiproduct fabrication systems can also be found elsewhere (Gerchak and Henig, 1986;Lee, 1996;Swaminathan and Tayur, 1998;Graman and Magazine, 2002;Gupta and Benjaafar, 2004;Weber, 2008;Bernstein et al, 2011;Ferreira et al, 2015).…”

Section: Introductionmentioning

confidence: 99%

Alternative fabrication scheme to study effects of rework of nonconforming products and delayed differentiation on a multiproduct supply-chain system

Chiu¹,

Lin²,

Wu³

et al. 2018

10.5267/j.ijiec

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This study uses an alternative fabrication scheme to study the effect of rework of nonconforming items and delayed differentiation on a multiproduct supply-chain system. Traditional economic production quantity model focuses on a single-product inventory system where all products made are assumed to be perfect quality and finished products are issued continuously. To increase machine utilization, lower quality costs in production, and reflect the real-world vendor-buyer integrated systems Chiu et al. (2016a) [Chiu, Y-S.P., Kuo, J-S., Chiu, S. W., Hsieh, Y-T. (2016a). Effect of delayed differentiation on a multiproduct vendor-buyer integrated inventory system with rework. Advances in Production Engineering & Management, 11(4), 333-344.] employed a single-machine two-stage production scheme to study the effects of rework and delayed differentiation on a multi-product supply-chain system. With the intention of further reducing fabrication cycle time, this study considers an alternative two-machine two-stage fabrication scheme to re-explore the problem in Chiu et al. (2016a). Machine one solely produces all common parts for multiple end products. Then, machine two fabricates the customized multiproduct using a common cycle time strategy. Through the use of mathematical modeling and analyses, the optimal production cycle length and distribution policy are derived. Numerical examples are provided to demonstrate practical usage of the research results, and show its significant benefit in reducing fabrication cycle time compared to that obtained from prior studies that used different schemes.

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A theoretical framework for postponement concept in a supply chain

Cited by 25 publications

References 40 publications

Operations mechanism of postponement strategy for service-oriented manufacturing

Operations mechanism of postponement strategy for service-oriented manufacturing

Metodología multicriterio para la ubicación del punto de desacople en sistemas de manufactura

Alternative fabrication scheme to study effects of rework of nonconforming products and delayed differentiation on a multiproduct supply-chain system

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