Order penetration point
From Supply Chain Management Encyclopedia
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The order penetration point refers to the stage in the production process where customers orders are accepted by the manufacturer. As seen in the Figure,<ref>Adapted from Olhager, J. (2003), "Strategic Positioning of the Order Penetration Point," ''International Journal of Production Economics''," 85 (3), 319-329.</ref> when the order is accepted after final product assembly, then the order prentartion point resides between the ''final assembly'' and ''shipment'' stage. This is refered to as ''make-to-stock'' form postponement strategy or | The order penetration point refers to the stage in the production process where customers orders are accepted by the manufacturer. As seen in the Figure,<ref>Adapted from Olhager, J. (2003), "Strategic Positioning of the Order Penetration Point," ''International Journal of Production Economics''," 85 (3), 319-329.</ref> when the order is accepted after final product assembly, then the order prentartion point resides between the ''final assembly'' and ''shipment'' stage. This is refered to as ''make-to-stock'' form postponement strategy or | ||
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==References== | ==References== | ||
<references /> | <references /> | ||
Revision as of 10:35, 20 May 2011
The order penetration point refers to the stage in the production process where customers orders are accepted by the manufacturer. As seen in the Figure,[1] when the order is accepted after final product assembly, then the order prentartion point resides between the final assembly and shipment stage. This is refered to as make-to-stock form postponement strategy or
References
- ↑ Adapted from Olhager, J. (2003), "Strategic Positioning of the Order Penetration Point," International Journal of Production Economics," 85 (3), 319-329.
