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CODP

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Understanding the {{this}} of a supply chain is important for [[SCM]] processes. The behavior of processes upstream and downstram of the {{this}} is quite different:
 
Understanding the {{this}} of a supply chain is important for [[SCM]] processes. The behavior of processes upstream and downstram of the {{this}} is quite different:
−
* 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 (blue in the diagram), 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 (green in the diagram). 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 resides in the first [[t:MTS|MTS]] process (when looking upstream).
+
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 (white rounded box in the diagram) typically reside in the first [[t:MTS|MTS]] process (when looking upstream):
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 +
 
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{| {{wikitable}}
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|-
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| class="blanco top" |
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===[[t:SCCS|Strategy]]===
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| style="padding: 0 8px; text-align: center; border: 1px dashed silver; border-bottom: 0px; vertical-align: bottom;" | Supplier
 +
| style="padding: 0 8px; text-align: center; border: 1px dashed silver; border-bottom: 0px; vertical-align: bottom;" | Receive, Store
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| style="padding: 0 8px; text-align: center; border: 1px dashed silver; border-bottom: 0px; vertical-align: bottom;" | Pre-build/ Produce
 +
| style="padding: 0 8px; text-align: center; border: 1px dashed silver; border-bottom: 0px; vertical-align: bottom;" | Assemble/ Finish
 +
| style="padding: 0 8px; text-align: center; border: 1px dashed silver; border-bottom: 0px; vertical-align: bottom;" | Package, Store
 +
| style="padding: 0 8px; text-align: center; border: 1px dashed silver; border-bottom: 0px; vertical-align: bottom;" | Pick, Load, Ship
 +
| style="padding: 0 8px; text-align: center; border: 1px dashed silver; border-bottom: 0px; vertical-align: bottom;" | Invoice
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| style="padding: 0 8px; text-align: center; border: 1px dashed silver; border-bottom: 0px; vertical-align: bottom;" | Customer
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|-
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| class="blanco top" |
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=== [[t:VMI|VMI]] ([[t:MTS|MTS]]) ===
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[[t:VMI]]
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| class="blue top dotmeright" |
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=== [[sc:D*|D*]] ===
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| class="blue top dotmeright" |
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===[[sc:S1|S1]]===
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| class="blue top dotmeright" |
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===[[sc:M1|M1]]===
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| class="blue top dotmeright" |
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===[[sc:M1|M1]]===
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| class="blue top dotmeright" |
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===[[sc:M1|M1]]===
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| class="blue this top dotmeright" |
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===[[sc:D1|D1]]===
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| class="green top dotmeright" |
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===[[sc:D1|D1]]===
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| class="green top" |
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=== [[sc:S*|S*]] ===
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|-
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| class="blanco top" |
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=== [[t:MTS|MTS]] ===
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 +
[[t:MTS]]
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| class="blue top dotmeright" |
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=== [[sc:D*|D*]] ===
 +
| class="blue top dotmeright" |
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===[[sc:S1|S1]]===
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| class="blue top dotmeright" |
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===[[sc:M1|M1]]===
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| class="blue top dotmeright" |
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===[[sc:M1|M1]]===
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| class="blue this top dotmeright" |
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===[[sc:M1|M1]]===
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| class="green top dotmeright" |
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===[[sc:D1|D1]]===
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| class="green top dotmeright" |
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===[[sc:D1|D1]]===
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| class="green top" |
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=== [[sc:S*|S*]] ===
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|-
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| class="blanco top" |
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=== [[t:PTO|PTO]] ([[t:MTO|MTO]]) ===
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[[t:PTO]]
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| class="blue top dotmeright" |
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=== [[sc:D*|D*]] ===
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| class="blue top dotmeright" |
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===[[sc:S1|S1]]===
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| class="blue top dotmeright" |
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===[[sc:M1|M1]]===
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| class="blue this top dotmedright" |
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===[[sc:M1|M1]]===
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| class="green top dotmeright" |
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===[[sc:M2|M2]]===
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| class="green top dotmeright" |
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===[[sc:D2|D2]]===
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| class="green top dotmeright" |
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===[[sc:D2|D2]]===
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| class="green top" |
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=== [[sc:S*|S*]] ===
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|-
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| class="blanco top" |
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=== [[t:ATO|ATO]] ([[t:MTO|MTO]]) ===
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[[t:ATO]]
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| class="blue top dotmeright" |
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=== [[sc:D*|D*]] ===
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| class="blue top dotmeright" |
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===[[sc:S1|S1]]===
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| class="blue this top dotmeright" |
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===[[sc:M1|M1]]===
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| class="green top dotmeright" |
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===[[sc:M2|M2]]===
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| class="green top dotmeright" |
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===[[sc:M2|M2]]===
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| class="green top dotmeright" |
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===[[sc:D2|D2]]===
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| class="green top dotmeright" |
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===[[sc:D2|D2]]===
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| class="green top" |
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=== [[sc:S*|S*]] ===
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|-
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| class="blanco top" rowspan=2 |
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=== [[t:CTO|CTO]] ([[t:MTO|MTO]]) ===
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[[t:CTO]]
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| class="blue top dotmeright" |
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=== [[sc:D*|D*]] ===
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| class="blue this top dotmeright" |
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===[[sc:S1|S1]]===
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| class="green top dotmeright" rowspan=2 |
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===[[sc:M2|M2]]===
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| class="green top dotmeright" rowspan=2 |
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===[[sc:M2|M2]]===
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| class="green top dotmeright" rowspan=2 |
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===[[sc:M2|M2]]===
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| class="green top dotmeright" rowspan=2 |
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===[[sc:D2|D2]]===
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| class="green top dotmeright" rowspan=2 |
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===[[sc:D2|D2]]===
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| class="green top" rowspan=2 |
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=== [[sc:S*|S*]] ===
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|-
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| class="green this dotmeright" |
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=== [[sc:D*|D*]] ===
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| class="green dotmeright" |
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===[[sc:S2|S2]]===
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|-
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| class="top" style = "width: 20%; border-right: 0; background-color: white;" |  
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| class="top" style = "width: 10%; text-align: center; border-left: 1px dashed silver; border-bottom: 1px dashed silver; border-right: 1px dashed silver; background-color: white;" | Supplier
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| class="top" style = "width: 15%; text-align: center; border-bottom: 1px dashed silver; border-right: 1px dashed silver; background-color: white;" | Source
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| class="top" style = "width: 30%; text-align: center; border-bottom: 1px dashed silver; border-right: 1px dashed silver; background-color: white;" colspan = 3 | Make
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| class="top" style = "width: 15%; text-align: center; border-bottom: 1px dashed silver; border-right: 1px dashed silver; background-color: white;" colspan = 2 | Deliver
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| class="top" style = "width: 10%; text-align: center; border-bottom: 1px dashed silver; border-right: 1px dashed silver; background-color: white;" | Customer
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|}
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For [[t:ETO]] replace Customer Order with Customer Intent.
 
===Use Cases===
 
===Use Cases===
 
* [[sc:A2]]
 
* [[sc:A2]]
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}}
 
}}
 
[[Category:Term]][[Category:Practice]][[Category:Supply Chain]]
 
[[Category:Term]][[Category:Practice]][[Category:Supply Chain]]
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  table td.blanco a, #mw-content-text table td.blanco a:hover {color: black;}
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  table td.green {background-color: #7AB800; text-align: center; color: white; }
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  table td.blue {background-color: #1185DD; text-align: center; color: white; }
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  table td.orange {background-color: #DF7111; text-align: center; color: white; }
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  table td.top { border-top: 4px solid white; }
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  table td.solidright { border-right: 3px solid white; }
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  table td.this a {border: 2px solid white; padding: 6px; border-radius: 6px;}
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  table td.buyer {text-align: right; color: white; padding-right: 8px; background-color: #7AB800;}
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}}

Latest revision as of 22:17, 29 September 2020

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 (blue in the diagram), Materials are pushed downstream. Optimization is realized by balancing inventory and capacity.
  • Downstream processes are driven by actual customer orders (green in the diagram). 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 (white rounded box in the diagram) typically reside in the first MTS process (when looking upstream):


Strategy

 Supplier Receive, Store Pre-build/ Produce Assemble/ Finish Package, Store Pick, Load, Ship Invoice Customer

VMI (MTS)

Vendor Managed Inventory

D*

S1

M1

M1

M1

D1

D1

S*

MTS

Make-to-Stock

D*

S1

M1

M1

M1

D1

D1

S*

PTO (MTO)

Package-to-Order

D*

S1

M1

M1

M2

D2

D2

S*

ATO (MTO)

Assemble-to-Order

D*

S1

M1

M2

M2

D2

D2

S*

CTO (MTO)

Configure-To-Order

D*

S1

M2

M2

M2

D2

D2

S*

D*

S2

  Supplier Source Make Deliver Customer

For Engineer-to-Order replace Customer Order with Customer Intent.

Use Cases

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Process(es)

IDNameLevelx
A108Define Supply Chain Network3A108
A202Define Supply Chain Network3A202
A203Define Network Process Flow3A203
A210Define To-Be Supply Chain Network3A210
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

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