Postponement is best described as:
A) Delaying payment to a supplier until the goods have been sold
B) Delaying the removal of inventory until the last possible moment
C) Delaying the customer-specific differentiation until the last possible moment
D) Delaying the change to the BOM until the old components have been used up

Question

Quizplus · Accepted Answer

Postponement is the delaying of customer-specific differentiation until the last possible moment, in order to increase flexibility and reduce costs. This is done to avoid investing in inventory that may not be demanded by the customers. Delayed differentiation is the opposite of early differentiation, which involves producing products with unique features early in the manufacturing process. Therefore, option C is the correct choice. Options A, B, and D are not related to postponement.

Postponement Is Best Described As