Business Commons^™

Measuring The Effect Of Transportation Uncertainty In The Postponement Strategy, Chang-Sung Kim

Theses and Dissertations

A manufacturing company can postpone production and logistics processes in its supply chain system. The delaying of manufacturing and logistics can eliminate the burden of accurate forecasting of demand and thereby reduce inventory carrying cost. Identical postponement processes cannot be generally implemented because every product has its own characteristics in reference to demand and every company has its own individual production environment. A company needs to find its best postponement strategy to minimize its costs for any certain product. This study applies Pagh and Cooper (1998)’s typology of supply chain postponement/speculation strategies to find the best postponement strategy for a …