Locating the customer order decoupling point based on supply chain typology

This study aims to locate the Customer Order Decoupling Point (CODP) based on supply chain typology using Make to Stock (MTS) and Make to Order (MTO) approaches for standard and innovative products in the Bushehr Polymer industry.

Two mathematical models have been proposed that seek to minimize the costs of mass production, customized production, and transportation costs. To solve and simulate the models, MATLAB R2019a software has been used. Then, the indicators and requirements of pulling and pushing production management strategies have been extracted and calculated.

The results indicated that the polymerization stages of the products include six stages: casting, molding, extrusion, bonding, cutting, and forming. Also, findings indicated that the optimal locating of (CODP) for polymer products is in the pushing production area and the cutting and molding stage. The determined optimal location indicated that the producer will have the lowest cost at this location for future production. It was inferred that the (CODP) point is based on the supply chain typology approach in the cutting and mass production area. Considering the nature of the linear model minimization of this research, the total cost index (C) indicated the lowest value in this area. Research

Due to the unique characteristics of the case study, the results of this research cannot be generalized to other industries. The covid-19 pandemic resulted in difficult access to data. The lack of research-related studies was another limitation. It was recommended to examine the position (CODP) in the LARG, sustainable and robust supply chain. Also, it was suggested to perform similar research in other industries and compare the results. Practical implications: Most of the company's products were located in the mass production area or standard products, hence, the company must maintain its profit margin by focusing and relying on this area. On the other hand, it should be noted that in the current economic situation, accepting separate orders outside the normal production conditions, not only does not benefit the company but also leads to the loss of the available resources spent on production lines. The supply chain typology of polymer products outlined that the values of the variables of the studied model in a period of 12 months can be calculated based on the point of separation of the customer order.

This study removes additional and ineffective patterns in the literature and enumerates the necessary indicators to determine the point of CODP. The innovation aspect of this study is the typological approach of the polymer supply chain and identifying its six steps for determining the CODP point to manage cost and time.