The Effect of Postponement of the Productivity of an Organization
THE EFFECT OF POSTPONEMENT ON THE PRODUCTIVITY OF AN ORGANIZZATION
Introduction:-
Over the past few decades, logistics activities have gained increasing strategic importance for almost every company all over the world. Fixed costs of production have increased, consumer demands have become more complex and are harder to predict, both in time and place. Technology is rapidly changing around the world every new day there is a new and advance technology and product life cycles have shortened while product range has increased. Now more than ever, companies are faced with the challenge of producing an increasingly large variety of products in a responsive manner while keeping materials and inventory to a minimum to fulfill the customer demand and satisfy him by reducing the fixed cost. Not only does demand vary from country to country, but products need to be altered for different markets in consideration of differences in language, culture and local standards. Consider the problems a manufacturer might face when expanding into new overseas markets. Forecasting is difficult now days because the market trend will change after sometime and so the customer demand will also change with the new trend and so the company faces the challenge of satisfying different types of demand while minimizing the risk and also minimizing the fixed cost. Increasingly, companies are using a strategy known as postponement or mass customization to improve customer service and minimize the risks associated with making different products in different countries. This paper presents a framework for understanding postponement and how it can be implemented. First it defines postponement and provides an overview on postponement and its implementation. Then it will discuss different postponement strategies and finally discussed that when postponement is appropriate and when not.
What is Postponement?
Postponement is essentially a type of network configuration that aims to reduce risk. On one hand
Introduction:-
Over the past few decades, logistics activities have gained increasing strategic importance for almost every company all over the world. Fixed costs of production have increased, consumer demands have become more complex and are harder to predict, both in time and place. Technology is rapidly changing around the world every new day there is a new and advance technology and product life cycles have shortened while product range has increased. Now more than ever, companies are faced with the challenge of producing an increasingly large variety of products in a responsive manner while keeping materials and inventory to a minimum to fulfill the customer demand and satisfy him by reducing the fixed cost. Not only does demand vary from country to country, but products need to be altered for different markets in consideration of differences in language, culture and local standards. Consider the problems a manufacturer might face when expanding into new overseas markets. Forecasting is difficult now days because the market trend will change after sometime and so the customer demand will also change with the new trend and so the company faces the challenge of satisfying different types of demand while minimizing the risk and also minimizing the fixed cost. Increasingly, companies are using a strategy known as postponement or mass customization to improve customer service and minimize the risks associated with making different products in different countries. This paper presents a framework for understanding postponement and how it can be implemented. First it defines postponement and provides an overview on postponement and its implementation. Then it will discuss different postponement strategies and finally discussed that when postponement is appropriate and when not.
What is Postponement?
Postponement is essentially a type of network configuration that aims to reduce risk. On one hand