The selected determinants of manufacturing postponement within supply chain context: An international study (original) (raw)
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Postponement in logistics strategies of global supply chains
2015
The paper aims to present postponement strategy as a crucial element of logistics strategies of today’s global supply chains. The article presents the history of postponement, characteristics of this concept, types of postponement and important information about its implementation in global supply chains. The paper also contains guidelines for future research on postponement concept.
Journal of Economics and Behavioral Studies, 2017
This article investigates the use of postponement decisions in determining the supply chain strategies of light vehicle manufacturers in South Africa. The article is exploratory and descriptive in nature. A survey was conducted among light vehicle manufacturers and the findings analysed by means of descriptive statistics. The results revealed that postponement decisions could be used to determine the supply chain architecture used by light vehicle manufacturers in South Africa. With regard to postponement decisions, the study found that all the light vehicle manufacturers made use of a lean supply chain strategy, while a few made use of an agile supply chain strategy. The results also revealed that all the production lines engaged in full speculation based on projected forecasting, and therefore employed a lean supply chain strategy. In terms of the postponement decisions made in line with the parent company of origin, European manufacturers 1 and 2 kept a work-in-progress inventory...
1Implications of Form Postponement to Manufacturing
2014
While much is written in the literature about the benefits and strategic impact of form postponement (FPp), little is still known about its application. We address ‘how ’ FPp is applied in terms of its operational and logistics implications within manufacturing facilities. This paper is a retrospective study of the application of FPp in three diverse manufacturing environments: a manufacturer of specialist high voltage cabling equipment we call ‘Electrico’; a manufacturer of industrial electric motors we call ‘Motorco’; and a manufacturer of control systems and components mainly for automated telling machines we call ‘Controlco’. Our findings show that FPp improved responsiveness of manufacturing in all cases, but that none of the applications of FPp was ideal from a theoretical perspective. The production planning system must be both responsive and flexible to support the application. For highly customised products, the customer order decoupling point (CODP) must be located suffici...
Reviewing the literature on Postponement strategies as a way for better flexibility in
Polycarpe Feussi, 2018
Globalization, technological and customer increasing changes, amongst other drivers, result in higher levels of uncertainty and unpredictability for organizations. In order for organizations to cope with the uncertain and fast changing economic and business environment, these organizations need to innovate in order to achieve flexibility. In simple terms, the organizations must develop strategies leading to the ability of these organizations to provide horizontal information connections across the supply chain to create and deliver products that meet customer needs, by synchronization of customer demands with product creation. The generated information will create efficiency and effectiveness throughout the whole supply chain regarding production, storage and distribution, as well as eliminating redundant activities and reduction in response time. In an integrated supply chain, spanning activities include coordination with distributors and suppliers. This paper explains how through postponement strategies, flexibility can be achieved in an organization. In order to achieve the above, a thorough literature review was conducted via the search of online websites that contains material from scientific journal data-bases, articles and textbooks on the subject of postponement and flexibility. The findings of the research are found in the last part of the paper. The first part introduces the concept of postponement and its importance in supply chain management. The second part of the paper provides the methodology used in the process of writing the paper.
Case Studies of Postponement in the Supply Chain
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Analysis of Postponement Practice in Cement Supply Chain: A Case Study
2020
This research focuses on assessing implementing postponement in a cement industry especially for OPC (Ordinary Portland Cement) in Indonesia. The company offers three postponement points; Ciawi and Kampung Rambutan, and Jatiwarna. This research has been done with observational method to map customer condition. Moreover, implementing linear programming model is used to gain optimal solution for allocated truck. The results are, highest proportion of OPC customer is in Jakarta, followed Karawang, and Bogor. The result from linear programming model simulation, Ciawi point is assigned to serve Jakarta and Bogor’ customers, Kampung Rambutan point is assigned for Jakarta and Kawarang’ customers, and Jatiwarna point is prepared for Jakarta, Karawang, Bekasi, Lampung, Pekalongan, Tangerang, and Serang’ customers. So, implementing postponement can increase customer satisfaction without adding higher cost such as investment cost. The cement industry encounter effectiveness and responsiveness ...
Analysis of postponement strategy by EPQ-based models with planned backorders
Omega, 2008
This paper develops economic production quantity (EPQ)-based models with planned backorders to evaluate the impact of the postponement strategy on a manufacturer in a supply chain. We derive the optimal total average costs per unit time for producing and keeping n end-products in a postponement system and a nonpostponement system, respectively. By comparing the optimal total average costs of the two systems, we evaluate the impact of postponement on the manufacturer under four circumstances. Our results show that postponement strategy can give a lower total average cost under certain circumstances. We also find that the key factors in postponement decisions are the variance of the machine utilization rates and the variance of the backorder costs. This is the Pre-Published Version.
Evaluation of postponement structures to accommodate mass customization
Journal of Operations Management, 2005
In order to meet increasing customer demands for more diverse product offerings, firms are revising their supply chain structures to accommodate mass customization. The revised structures often involve delaying the delivery of the products until after the customer orders arrive, termed time postponement (TP), or delaying the differentiation of the products until later production stages, termed form postponement (FP). We develop models representing possible implementations of the TP and FP structures and compare their performance in total supply chain cost and expected customer waiting times. We find that once the number of different products increases above some threshold level, the TP structure is preferred under both performance metrics.