When something is said to be coupled, it would mean that the two items are connected and interdependent on one another. In the case of processes and supply chains there can be both positives and negatives with regards to coupled inventory and decoupled inventory. As you know, demand can fluctuate, shortages will occur, people call in sick and shipping routes are sometimes detoured. There is a long list of issues that can disrupt both internal processes and supply chains.
Many of these disruptions can be costly. Decoupling inventory can protect an organization against inventory disruptions as well as allow an organization to continue functioning when supply chain failures occur. Decoupling inventory is also a useful method to help minimize or level the playing field of some manufacturing or supply chain processes that move faster than other ones. So, what does it mean to decouple inventory?
How does decoupling work?
Decoupling works by strategically finding and establishing what are known as decoupling points. For example:
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