How can help orion in its operations-logistics management

Assignment Help Operation Management

Reference no: EM134039119

Assignment:

Orion is a global company that sells copiers. Orion currently sells 10 variants of a copier, with all inventory kept in finished-goods form. The primary component that differentiates the copiers is the printing subassembly part. Currently, Orion holds inventory of all 10 different printing subassembly parts. An idea being discussed is to introduce commonality in the printing subassembly (i.e., all 10 variants of copiers use the same common components), so that inventories can be kept in component form instead of the finished-goods form (i.e.,10 variants of copier).

(1) This conforms to the concept of postponement, which has been discussed in this subject. Discuss the concept first, and then discuss how it can help Orion in its operations and logistics management. Be specific in your answer.

(2) For Orion, compared to the case when they hold inventory in finished-goods form, how will (a) and (b) below change after using common components for all variants? i.e., will each of them increase, decrease, or remain the same? Explain why.

(a) The response time to customer orders

(b) Safety inventory level.

Reference no: EM134039119

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