Decoupling
-Provides for increasing operating efficiency within a single manufacturing facility by stockpiling work-in-process inventory between production operations.
-Decoupling enables manufacturing and distribution of economic lot sizes in anticipation of sales thus ensuring large sized shipments with minimum freight cost.
-Decoupling permits products manufactured over a period of time to be sold as an assortment.
-Decoupling increases the operating efficiency at a single location while geographical specialization includes multiple locations.
-However, JIT,DRP etc have reduced the economic benefits of decoupling considerably.
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