1. Supply Chain Customer Order Decoupling Point
Keep Source, Make, Deliver, Return in perspective
The point at which inventory is positioned to allow entities in the supply chain to operate independently.
The closer the point is to the customer, the quicker the customer can be served
Lead times
Benefits of being close? Examples?
Benefits of being farther? Examples?

2. Decoupling Point Options
Make to stock (in between made and deliver)
Served finished goods
Assemble to order (right at make)
Use preassembled parts to make
Make to order (closer to start of make heading towards source)
Use raw materials to make
Engineer to order (in between source and make)
Work w/ customer to design and then purchase materials

3. Little’s Law
Long term relationship between the inventory, throughput rate, and flow time
A way to predict how many products are consistently in progress
If we are finishing on average 50 desks a day and it takes 3 days to build a desk
Day 1 = starting 50
Day 2 = continuing 50 plus starting another 50
Day 3 = finished 50, plus continuing 100
Day 4 = Finishing 100 plus starting another 50
Inventory = throughput rate x flow time

4. Assembly-Line Balancing
Objective is to minimize the imbalance between machines or personnel while meeting required output
Starts with the precedence relationships
Determine cycle time
Calculate theoretical minimum number of workstations
Balance the line by assigning specific tasks to workstations

5. Wing Component Example
TABLE 9.2
Precedence Data for Wing Component
TASK
ASSEMBLY TIME (MINUTES)
TASK MUST FOLLOW TASK LISTED BELOW A 10 – B 11 C 5 D 4 E F 3
C, D G 7 H I
G, H
Total time 65
This means that tasks B and E cannot be done until task A has been completed

6. Wing Component Example
TABLE 9.2
Precedence Data for Wing Component
TASK
ASSEMBLY TIME (MINUTES)
TASK MUST FOLLOW TASK LISTED BELOW A 10 – B 11 C 5 D 4 E F 3
C, D G 7 H I
G, H
Total time 65
480 available mins per day
40 units required
Cycle time =
Production time available per day
Units required per day
= 480 / 40
= 12 minutes per unit
Figure 9.12 I G F C D H B E A 10 11 5 4 3 7
Minimum number of workstations
= 65 / 12
=5.42, or 6 stations