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Decoupling Point and the Product Differentiation Point
Product Differentiation Point
The product differentiation point is the point where the firm’s product is configured and it takes on specific features.
Product Postponement
It is defined as the process of doing the final set of manufacture or customization closer on the supply chain to the end-user. This implies that any firm would ideally like to postpone the product differentiation point as further up the supply chain as possible, the objective being to keep the inventory in generic form for as long as possible. In order to be responsive to the customer’s needs and demands of the market place for greater variety and customization the firm attempts to set the product differentiation point as close to the customer as possible.
Decoupling Point
A major problem in all supply chains is that they have little visibility of ‘real’ demand. Since large supply chains often tend to be extended with multiple echelons of inventory between the point of production and the final market place they tend to be fo
Approximate Word count = 684
Approximate Pages = 3 (250 words per page double spaced)
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