Integrated design and evaluation of logistic networks - Highly Extensible Life-Cycle Oriented Placement of the Order Penetration Point Sub-Project 3: Supply Chain Process Adaptation

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In order to lower costs, inventory levels and transportation efforts while still being responsive to customer needs, it is beneficial to retain a product in a neutral product status in a supply chain as long as possible. Therefore, the placement of the order penetration point (OPP) Is a key decision in supply chain design since the product will be differentiated according to the customers requirements after the ORP. The strategy of placing the OPP as far downstream as possible is commonly referred to as postponement. Despite a great number of publications on postponement, a practically applicable method for the right placement of OPP is still missing, let alone for the global context of automotive supply chains which extend to such distinct markets as the Brazilian and the German one. In industrial practice, the placement of OPP typically depends on managerial intuition and experience, which, obviously, is neither a satisfactory nor a scientific approach considering the strategic impact of these decisions. This holds especially true when OPP decisions have to be reconsidered forthe different phases in a product life-cycle with their varying logistical requirements. The aim of this project is to develop a method for the placement of the OPP in global automotive supply chains over a complete product life-cycle and to validate it by simulation. The research will start with a systematic investigation on the influence of product diversity and resource flexibility on the feasibility of postponement strategies in Germany and Brazil, a field on which research is noticeably absent.