Asked by Janelle Ouzts on May 07, 2024
Verified
Under tailored postponement,a firm produces the amount that is very likely to sell using
A) the lower cost production method with postponement and produces the portion of demand that is uncertain using postponement.
B) the lower cost production method without postponement and produces the portion of demand that is uncertain using postponement.
C) the higher cost production method with postponement and produces the portion of demand that is uncertain using postponement.
D) the higher cost production method without postponement and produces the portion of demand that is uncertain using postponement.
Tailored Postponement
A supply chain strategy where the manufacturing process is initiated but the final configuration of the product is delayed until the last possible moment to better meet customer demand.
Production Cost
The total expenditure incurred in the manufacturing of a product, including materials, labor, and overhead expenses, significant for pricing and profitability analysis.
Lower Cost
The reduction in expenses or outlay required to produce goods or services, often pursued to achieve competitive pricing.
- Recognize the role of tailored and flexible postponement strategies in matching supply with uncertain demand.
Verified Answer
CV
Chris ViechecMay 14, 2024
Final Answer :
B
Explanation :
Tailored postponement involves producing the amount that is very likely to sell using the lower cost production method without postponement for the certain demand, and then using postponement for the portion of demand that is uncertain, allowing for flexibility and customization.
Learning Objectives
- Recognize the role of tailored and flexible postponement strategies in matching supply with uncertain demand.