Form postponement

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Russian: Отсрочка производства (по форме)

Form (or manufacturing) postponement connotes a situation where a standard or a base product is manufactured in sufficient quantities in order to realize economy on scale while the finalization of features such as color and power cards can be deferred until customer specifications are received [1]. The form postponement is successful because of local differences in customers and customers’ requirements are significant (tastes, language, standards, preferences). The benefits:

  • Inventories can be held at generic level so that there will be fewer stock keeping variants and hence less inventory in total
  • Flexibility is greater – same components, modules or platforms can be embodied in a variety of end products.
  • Forecasting is easier at the generic level is easier than at the level if the finished item

References

  1. Bowersox, D.J., Closs, D.J., (1996) Logistical Management: The Integrated Supply Chain Process. McGraw-Hill, Singapore.
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