Form postponement: a decision-making perspective

Fabrizio Salvador ()
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Fabrizio Salvador: Instituto de Empresa

Working Papers Economia from Instituto de Empresa, Area of Economic Environment

Abstract: Operations management literature defines form postponement as the deferment of product differentiation activities through changes in the architecture and/or the manufacturing and distribution process of a product family. We contend that when form postponement is meant to reduce the risk and associated costs of specifying the wrong mix of product variants, it is more appropriately defined as the deferment of production planning decisions. We elaborate on this concept, proposing a notion of form postponement from a decision-making perspective, and develop an operational procedure to identify and quantify all opportunities for form postponement relative to a given product family.

Pages: 28 pages
Date: 2008-01
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