Cumulative quantities (logistics)

Cumulative Quantities is a certain concept to calculate material requirements and production and delivery orders whereby material requirements are added up along a timeline for a defined time-window that can be drawn as a 'cumulative curve'. This concept is developed for serial production and mainly used in the automotive industry to plan, control and monitor production und delivery ^[1].

Cumulative Quantities and Closed-Loop-Cycle

The Concept of Cumulative Quantities (CCQ) uses the feedback mechanism of a closed loop, which can be find in industrial, engineering and electronic systems. The target requirements are summarized for each time-interval and compared with the actual values. If the cumulative deviation for a certain time-interval is positive then no further order is needed, if the deviation is negative then another order is issued. To 'calmer' production and material flow you can define upper and lower tolerance boundaries and only if these boundaries are violated new resp. renewed orders are issued.

To check the entire production and materail flow some 'reporting limits' can be defined at ceratin Counting Points and if a limit is exceeded an 'Alerts' is issued. Thereafter one of the logistic stuff has to prove the reason of the 'Alert' and if the reason isn't correct and traceable counter-measures are needed. Here are some reasons for failures in data or process: bad primary demand, mistakes in [BOM], no accurate data acquisition (or too late), calculation mistakes, mounting of incorrect parts at assembly line.

Cumulative Quantities and Counting Points

Basis of target-actual-control-loop are exactly defined Counting Point(logistics) which demarcate the next-following intervals along the supply chain ^[2].

Cumulative Quantities and Inventory

The cumulative differences of next-following Counting Points show the quantities of the material items which traverse the concerned Interval and therefore we can get tranparency of the inventory of an item along the entire supply chain.

Cumulative Quantities and Supply Chain

Cumulative Quantities are a part of official EDI-formats that are widely use of OEM's and their suppliers in different industries. Normally the data at the Counintg Point 'Good recepit# are use between the producer and the consumer. Using the CCQ for the entire supply chain a Bullwhip effect can be avoid ^[3].

literatur

Wilmjakob Herlyn (2014), The Bullwhip Effect in expanded Supply Chains and the Concept of Cumulative Quantities, Berlin: epubli, pp. 513–528, ISBN 978-3-8442-9878-9
Hans-Peter Wiendahl (2010), Betriebsorganisation für Ingenieure (7. ed.), München: Hanser, ISBN 978-3-446-41878-3
Hermann Lödding: Verfahren der Fertigungssteuerung. 2. Auflage. Springer Verlag, Berlin/ Heidelberg 2008, ISBN 978-3-540-76859-3.
Paul Schönsleben (2016), Integrales Logistikmanagement (7. ed.), Berlin Heidelberg: Springer Vieweg, ISBN 978-3-662-48333-6

references

^ H. Lödding: Verfahren der Fertigungssteuerung. Springer Verlag, 2008, Kap. 13.
^ Paul Schönsleben: Integrales Logistikmanagement, Springer Vieweg Verlag, 7. Aufl., 2016, S. 308
^ W. Herlyn: The Bullwhip Effect in expanded Supply Chains and the Concept of Cumulative Quantities. epubli Verlag, Berlin 2014, ISBN 978-3-8442-9878-9, S. 513–528.

[1] H. Lödding: Verfahren der Fertigungssteuerung. Springer Verlag, 2008, Kap. 13.

[2] Paul Schönsleben: Integrales Logistikmanagement, Springer Vieweg Verlag, 7. Aufl., 2016, S. 308

[3] W. Herlyn: The Bullwhip Effect in expanded Supply Chains and the Concept of Cumulative Quantities. epubli Verlag, Berlin 2014, ISBN 978-3-8442-9878-9, S. 513–528.

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