Analysis of form postponement based on optimal positioning of the differentiation point and stocking decisions

Abstract

To cite this version:Hartanto Wong, Joakim Wikner, M M Naim. Analysis of form postponement based on optimal positioning of the differentiation point and stocking decisions. Abstract: In this paper we analyse the use of form postponement based on the positioning of differentiation point and stocking policy. Six classes of manufacturing configurations are identified based on the choice of whether or not form postponement is employed and the decision regarding the stocking policy for the final product configurations as well as for the generic component. Analytical evaluation methods based on queuing models are used to assess operational measures for each class of configuration and solution algorithms are developed to determine the optimal positioning of differentiation point and the optimal stocking levels. This allows us to compare the relative merits of all manufacturing configurations based on their respective best performances. The results of numerical experiment show how different operational parameters may influence the choice of optimal configuration, the preference of early or late postponement, and the relative cost savings obtained from employing form postponement.

Impact of the customer demand on order fulfilment strategies based on floating decoupling point: a simulation analysis

“…At present, postponement researches aim at studying and developing of new strategies (Wong, Wikner, and Naim 2009;Kisperska-Moron and Swierczek 2011;Saghiri 2011;Wong, Potter, and Naim 2011;Van Kampen and Van Donk 2014), which focus on the application to productive environments such as the food industry (Wong, Potter, and Naim 2011;Van Kampen and Van Donk 2014), the textile industry (Huang and Li 2009;Chaudhry and Hodge 2012) and the supply chain (Kisperska-Moron and Swierczek 2011; Chaudhry and Hodge 2012). The aim of the companies, within the scope of the current demand, is to increase the flexibility of the process while proposing new approaches to address the complexity of the production environment and markets.…”

An analytical framework for evaluating the value of enhanced customisation: an integrated operations-marketing perspective

“…More recently Wong et al (2009) examine different postponement configurations characterised based on the positioning of the differentiation point and the customer order decoupling point. All these studies are common in that their analysis is focused on the production-inventory system without considering any marketing factors.…”

“…For a given N we need to optimize S and b, and then we need to optimize N. Different from the problem P MTS , however, it is not easy to prove whether or not the profit function is concave in 0 S . Given that b is fixed, we know that Wong et al (2009). That is, we search over b values in the range 0<b<1 using a pre-specified incremental factor.…”

A structural approach to assessing postponement strategies: construct development and validation

“…Postponement tries to manage risks and uncertainties in demand by delaying value-adding activities throughout the supply chain (Saghiri, 2008). The delay can happen in the sequence (form), time or place of activities (Yang et al 2004a;and Wong et al, 2009). The literature contains diverse perspectives on the postponement theories and applications.…”