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Postponement advantages-disadvantages with examples

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Reference no: EM131223871

Explain following Postponement Advantages & Disadvantages with examples.

Advantages

1. Delay differentiation of products in the same family as late as possible.

2. Enables the use of aggregate forecasts

3. Enable the delay of detailed forecasts

4. Reduces scrapped or obsolete inventory , increase customer service

Disadvantages

1. Every process re-sequencing and modularization is not possible.

2.Longer lead time, high inventory levels , skewed inventory

3. Too many localization options

4. Unpredictable , negatively correlated demand.

Reference no: EM131223871

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