What are objectives of decoupling in inventory management?

Question

15 Apr 2024

Answer :

Word Count : 276

Decoupling in inventory management refers to the strategic separation of various stages in a production process or supply chain to enhance flexibility and efficiency. The objectives of decoupling in inventory management include:

1. Buffering Demand Fluctuations: Decoupling inventory helps to absorb fluctuations in customer demand, preventing __________ _____ ___ ____ _______ ________ __________ ___ ______ _______ __________ ___.
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Item No.	Annual Demand (Rs.)	No. of orders per year	Order Size (Rs.)
1	10,00,000	4	2,50,000
2	6,40,000	4	1,60,000
3	9,00,000	4	22,500
4	2,500	4	625
5	1,600	4	400

Table 2
Month	Month Demand (no. of units)
January	70
February	75
March	72
April	80
May	85
May	90