A coffee mug maker makes 15 different colors of mugs. It decides to postpone the coloring step in the mug manufacturing process and instead supplies all mugs in a neutral color to its main distributors. It also supplies those distributors with color kits with different colors, who then paint mugs when customer demand for specific color mugs become clearer. This practice is called postponement and works best when: a. Demand at the customer level is uncertain b. The cost of shifting a work step in the process to a later time /another location (say cost at the distributor end-addl equipment, worker training for painting
A coffee mug maker makes 15 different colors of mugs. It decides to postpone the coloring step in the mug manufacturing process and instead supplies all mugs in a neutral color to its main distributors. It also supplies those distributors with color kits with different colors, who then paint mugs when customer demand for specific color mugs become clearer. This practice is called postponement and works best when: a. Demand at the customer level is uncertain b. The cost of shifting a work step in the process to a later time /another location (say cost at the distributor end-addl equipment, worker training for painting
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter11: Simulation Models
Section: Chapter Questions
Problem 47P
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