There is a cost associated with postponement because the production cost using postponement is typically lower than the production cost without it.

Question

Quizplus · Accepted Answer

The statement is incorrect. The production cost using postponement is typically higher than the production cost without it because it requires additional resources for warehousing and handling of partially completed products. However, the benefits of postponement, such as reducing inventory costs and improving customer satisfaction, may outweigh the additional production costs.

There Is a Cost Associated with Postponement Because the Production