Coupling point production control system for quick response to orders and minimum inventories

In the proposed production control system, inventories are concentrated at the position where supply lead time and demand lead time are equal, and inventory and production planning are made at this position. This position is defined as the "coupling point". The coupling point is moved as demand lead time and supply lead time change. Inventory and production planning are made at that new coupling point. This makes the forecasted inventories unnecessary on the demand side of the coupling point, and this also makes quick response to orders possible. This new system has been applied to an electronic device manufacturing process successfully.