SERVICE LEVEL MODELING IN THE SUPPLY CHAIN WITH THE USAGE OF SOLUTIONS BASED ON DECOUPLING POINT CONCEPT

Abstract: The customers demand often requires to be satisfied within time, which is shorter than the real time necessary for manufacturing and delivering a product to a consignee. In a traditional supply chain the uncertainty of a forecast based on inflowing orders is repeatedly a reason for its delayed response to the market needs, and gathering excessive stock in comparison with real requirements is a counteracting method. However, there is a possibility of implementing a faster and more efficient supply chain reaction to consumers' behaviours. It is especially important when dealing with frequently purchased consumer products. Due to the popularization of automatic identification and EDI systems, it is possible for the final supply chain links to make the data on sales and stock available to manufacturers and suppliers co-operating with them as a result of which the supply chain may undertake activities steered with demand. The effect of such activities is a better accuracy of forecasts and the possibility to eliminate stocks excessive in comparison with real demand.