ABSTRACT

This study dealt with the selection of decoupling point using capacity and demand characteristic of the suppliers that manufacture the insulation panel for the shipbuilders. This study analyzed how the location of the decoupling point, the inventory cost and total cost change when the selection factors of decoupling point change. The result of simulation and the result of sensitivity analysis found out how selection factors affect the location of the decoupling point, the inventory cost and total cos and which factor is the most influential. This study would help the suppliers in the shipbuilding industry to increase their costcompetitiveness through decreasing inventory cost with the right decoupling point.

KEYWORD

Decoupling point, Project industry, Capacity, Demand characteristic, System dynamics

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