Actions
Customer Order Decoupling Point Best Practice, Customer Order, Decoupling Point, Order Cycle, Order-to-Cash, Supply Chain, Network The process or node in the supply chain network where the activities are no longer driven by individual orders
CODP
Difference between revisions of "CODP"
| Line 4: | Line 4: | ||
* Upstream processes are driven by forecast based planning information, Materials are pushed downstream. Optimization is realized by balancing inventory and capacity. | * Upstream processes are driven by forecast based planning information, Materials are pushed downstream. Optimization is realized by balancing inventory and capacity. | ||
* Downstream processes are driven by actual customer orders. Materials are pulled by the order. Optimization is realized by balancing capacity and lead-times. | * Downstream processes are driven by actual customer orders. Materials are pulled by the order. Optimization is realized by balancing capacity and lead-times. | ||
| − | The {{OR}} [[SCO]] [[Domain]] recognizes these differences in behavior at level-2: [[t:MTS]] ([[t:MTS|MTS]]), [[t:MTO]] ([[t:MTO|MTO]], [[t:CTO|CTO]], [[t:ATO|ATO]], [[t:PTO|PTO]]), and [[t:ETO]] ([[t:ETO|ETO]]). {{this}}s typically | + | The {{OR}} [[SCO]] [[Domain]] recognizes these differences in behavior at level-2: [[t:MTS]] ([[t:MTS|MTS]]), [[t:MTO]] ([[t:MTO|MTO]], [[t:CTO|CTO]], [[t:ATO|ATO]], [[t:PTO|PTO]]), and [[t:ETO]] ([[t:ETO|ETO]]). {{this}}s typically resides in the first [[t:MTS|MTS]] process (when looking upstream). |
===Use Cases=== | ===Use Cases=== | ||
* [[sc:A2]] | * [[sc:A2]] | ||
Revision as of 22:27, 9 July 2017
Customer Order Decoupling Point is a Term describing the process or node in the supply chain network where the activities are no longer driven by individual orders. Managing Customer Order Decoupling Points is a Best Practice.
Understanding the Customer Order Decoupling Point of a supply chain is important for Supply Chain Management processes. The behavior of processes upstream and downstram of the Customer Order Decoupling Point is quite different:
- Upstream processes are driven by forecast based planning information, Materials are pushed downstream. Optimization is realized by balancing inventory and capacity.
- Downstream processes are driven by actual customer orders. Materials are pulled by the order. Optimization is realized by balancing capacity and lead-times.
The OpenReference Supply Chain Operations Domain recognizes these differences in behavior at level-2: Make-to-Stock (MTS), Make-to-Order (MTO, CTO, ATO, PTO), and Engineer-to-Order (ETO). Customer Order Decoupling Points typically resides in the first MTS process (when looking upstream).
Use Cases
Community Importance Rating: