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Postponement

Postponement is a science topic covered in the lgStudy science library. This page brings together a partial reference excerpt, illustrations, worked examples, real-world applications and a short study plan, so you can understand Postponement rather than just read about it. In short: Postponement is a business strategy employed in manufacturing and supply chain management which maximizes possible benefit and minimizes risk by delaying further investment into a product or service until the last possible moment, or where a manufacturer produces a generic product, which can be modified at a later stage before the final distribution to the customer. An example of such a strategy is Dell Computers' b…

Key takeaways

  • Postponement belongs to science; place it in that map before memorising details.
  • Learn the definition first, then one example that makes the definition concrete.
  • Connect Postponement to a quantity you can measure, compute or draw — that is where exam questions come from.
  • Reproduce the core statement of Postponement from memory before moving on to harder problems.

Reference excerpt

Postponement is a business strategy employed in manufacturing and supply chain management which maximizes possible benefit and minimizes risk by delaying further investment into a product or service until the last possible moment, or where a manufacturer produces a generic product, which can be modified at a later stage before the final distribution to the customer. An example of such a strategy is Dell Computers' build-to-order online store. One of the earliest references to the concept was in a paper by Walter Zinn and Donald J. Bowersox in the Journal of Business Logistics in 1988, which highlighted five types: labeling, packaging, assembly, manufacturing and time postponements.

One of the most modern definitions today is the following, suggested by Christopher (2005):Postponement refers to the process by which the commitment of a product to its final form or location is delayed for as long as possible. A successful example of postponement – delayed differentiation – is the use of "vanilla boxes". Semi-finished computers are stored in advance of seeing the actual demand for the finished products. Upon seeing the demand, thus with no residual uncertainty – these “vanilla boxes” are finished by adding (or removing) components. The three key interrelated decisions are: (a) how many different types of vanilla boxes to stock, (b) in what quantities, and (c) how to finish to meet the order most effectively. Another example is an umbrella manufacturer who does not know what the demand will be for different colored umbrellas. The manufacturer will manufacture all white umbrellas and dye them later when umbrellas are in season and it is easier to predict demand of each color of umbrella. This way the manufacturer can stock up on white umbrellas early with minimal labor costs, and be sure of the demand before they dedicate time and money into predicting the demand so far in the future.

Historical development of postponement According to various logistics journals, supply chain management books and articles, the postponement concept has three key dates in its development in the 20th century – 1950, 1965 and 1988:

… excerpt ends here. Continue reading the full article.

Worked examples

Example 1 — a first encounter with Postponement

Start with the simplest possible case. Write down what Postponement claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to Postponement before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about Postponement ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of Postponement

In research
Postponement appears in science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry
Engineering practice reuses Postponement in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom
Postponement is common in secondary-school and first-year university syllabi. It links to neighbouring topics Business terms, Manufacturing, so understanding it makes those chapters shorter.
In everyday life
Look for Postponement outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.

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How to study Postponement in 20 minutes

  1. Read the reference excerpt below once, without taking notes.
  2. Close the page and write down what Postponement means in your own words.
  3. Compare your version with the excerpt and mark what you missed.
  4. Work through the three examples above with pen and paper.
  5. Explain Postponement out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is Postponement in simple terms?

Postponement is a business strategy employed in manufacturing and supply chain management which maximizes possible benefit and minimizes risk by delaying further investment into a product or service until the last possible moment, or where a manufacturer produces a generic product, which can be mod…

Why does Postponement matter?

Because it connects several science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study Postponement?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on Postponement.

Tags

  • Business terms
  • Manufacturing

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