METHODOLOGY FOR POSITIONING MULTIPLE DECOUPLING POINTS IN HYBRID MANUFACTURING SUPPLY CHAIN SYSTEM
Akhtar Nawaz*, Sahar Noor*, Iftikhar Hussain*, Afzal Khan*, Shahid Rashid**, Rehman Akhtar*
ABSTRACT
Manufacturing companies are hard pressed to produce products faster and keep their cost at possible minimum. Manufacturers
are always in search to fit their supply chains both internal (within manufacturing) and external to meet
the challenge of competitive market. The delivery time is one of the most critical factors which influence management
of the supply chain networks and cost of the product. To respond to a given lead time, manufacturing firms need to
adjust their supply chain networks and design an effective interface for decoupling points in the supply chain based
on the cost to be incurred. In this paper, a modified cost model is proposed for a hybrid supply chain networks of
a manufacturing firm which is applied for determining positions for decoupling points in the entire manufacturing
supply chain networks. The cost model is useful in evaluating performance of the supply chain in terms of cost for
a given delivery lead time and helps draw a line of multiple decoupling points in the networks which is supposed to
yield best possible cost. The application of the model has been demonstrated through an example for its usefulness.
The results shows effectiveness of the proposed model and leads to recommendations for developing a comprehensive
and integrated methodology for designing interface for hybrid manufacturing supply chain networks for quick
response to the delivery lead time.
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June 2015
Vol 34 No 1 (2015)
