Asian Science
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Abstract: In this study, after studying the characteristics and
concepts relating to the Order Penetration Point (OPP), a dynamic programming
model which determines this point in auto export supply chain was proposed.
One of the most important characteristics of this supply chain was that,
the product was packaged in different modules and after various stockings
and passing long routs, was assembled in the target country. This modularized
characteristic of the product was encouraging to explore the OPP of the
chain from one point to several points in which the OPP of each module
was located. Our proposed model tried to put the OPP of expensive modules
(that have higher inventory holding cost) in the upstream section of the
chain and puts the OPP of cheaper ones which created delay, in the downstream
section of the chain. And finally, a numerical example was provided and
solved to illustrate the application of our proposed model.