Location of customer order decoupling point in the supply chain of deteriorated food based on dynamic model

Abstract

Considering the supply chain of deteriorated food, a two-stage dynamic model in the product life cycle is proposed. The optimal conditions and results are obtained by using the maximum principle. On this basis, the effect of location of CODP on the total cost is researched in the product life cycle. By the data simulation, the model constructs the relations of CODP, inventory policy and demand type. The results show that CODP locates in the downstream of the product life cycle which is a linear function of the product life cycle. The demand forecast is the main factors influencing the total cost. The model can reflect the relation between the total cost and inventory, demand of the supply chain for deteriorated food. © Maxwell Scientific Organization, 2014.