Lecture 3

Question 1

Design for supply chain

Answer 1

1. Product-related (transportation costs, packaging desing)

2. Process-related (Product differentiation, Postponement, mass customization)

Question 2

Postponement

Answer 2

Postponement is a concept in supply chain management where the manufacturer produces a generic product, which can be modified at the later stages before the final transport to the customer.

(The manufacturer will manufacture all-white umbrellas and dye them later when umbrellas are in season and it is easier to predict the demand of each color of umbrella.)

Question 3

Advantages of the postponement strategy

Answer 3

• Better demand forecasting
• Reduction of inventory
• Reduction lead time
• Maximization of profit

Question 4

Postponement strategies

Answer 4

1. Full speculation strategy (Make to stock, Delivery -to- stock) (All manufacturing operations are performed without any involvement from the customer)[
2. Logistics postponement strategy (Make to stock, Delivery -to- order) (the last differentiating stages are performed at the warehouse/distribution center)
3. Manufacturing postponement strategies.(Make to order, Delivery -to- stock).( Focuses on designing the products, so that they are kept undifferentiated for as long as possible)
4. Full postponement strategy (Make to order, Delivery -to- order) ( Refers to making the decoupling point earlier in the process)

Question 5

Challanges to implement postponement ( disadvatages)

Answer 5

• Alignment of the processes
• To much management time
• Too costly