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IOBPCS based models and decoupling thinking

Wikner, Joakim, Naim, Mohamed M., Spiegler, Virginia L. M. and Lin, Junyi 2017. IOBPCS based models and decoupling thinking. International Journal of Production Economics 194 , pp. 153-166. 10.1016/j.ijpe.2017.05.009

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The inventory and order based production control system (IOBPCS) is mainly a model of a forecast driven production system where the production decision is based on the forecast in combination with the deviation between target inventory and actual inventory. The model has been extended in various directions by including e.g. WIP feedback but also by interpreting the inventory as an order book and hence representing a customer order driven system. In practice a system usually consists of one forecast driven subsystem in tandem with a customer order driven subsystem and the interface between the two subsystems is represented by information flows and a stock point associated with the customer order decoupling point (CODP). The CODP may be positioned late in the flow, as in make to stock systems, or early, as in make to order systems, but in any case the model should be able to capture the properties of both subsystems in combination. A challenge in separating forecast driven from customer order driven is that neither the inventory nor the order book should be allowed to take on negative values, and hence non-linearities are introduced making the model more difficult to solve analytically unless the model is first linearized. In summary the model presented here is based on two derivatives of IOBPCS that are in tandem, and interfaces between them related to where the demand information flow is decoupled and the position of the CODP.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Centre for Advanced Manufacturing Systems At Cardiff (CAMSAC)
Subjects: H Social Sciences > HD Industries. Land use. Labor
Uncontrolled Keywords: IOBPCS; CODP; System dynamics
Publisher: Elsevier
ISSN: 0925-5273
Date of First Compliant Deposit: 11 May 2017
Date of Acceptance: 10 May 2017
Last Modified: 19 Jan 2021 01:07

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