How to set optimal order spike horizon in multi-echelon supply chain?

1. Optimal order spike horizon?
Evaluating DDMRP implementation in
multi-echelon supply chain

2. Tier 2 supplier Tier 1 supplier Our company
Option 1: Limited demand visibility?
MachiningMoulding,
compression and cutting
Module
assembly
End product
assembly
Belgium & Sweden
Finland
Estonia Finland
ASRLT = 4 weeks
Order spike horizon of each decoupling point limited to 1 x ASRLT
Purchase order
Order spike horizon
ASRLT = 4 weeks ASRLT = 4 weeks
Order spike horizon
Replenished Lead time managedReplenished
Order spike horizon

3. Tier 2 supplier Tier 1 supplier Our company
Option 2: Unlimited demand visibility?
MachiningMoulding,
compression and cutting
Module
assembly
End product
assembly
Belgium & Sweden
Finland
Estonia Finland
ASRLT = 4 weeks
Purchase order
Order spike horizon
ASRLT = 4 weeks ASRLT = 4 weeks
Order spike horizon
Replenished Lead time managedReplenished
Order spike horizon
Order spike horizon of each decoupling point equals to planned point of
useage demand (=Master Production Schedule of end product assembly)