Do you think supply chain design and planning should be as rigid as possible or as flexible as possible? Give an example. One of the key aspects of Dell business model was postponement of the assembly until receiving customer orders. Explain how postponement can help reduce inventory.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter12: Queueing Models
Section: Chapter Questions
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  • Do you think supply chain design and planning should be as rigid as possible or as flexible as possible? Give an example.

 

  • One of the key aspects of Dell business model was postponement of the assembly until receiving customer orders. Explain how postponement can help reduce inventory.
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The polar opposite of a flexible supply network is a stiff supply chain. There may be a more appropriate example for a supply chain than strips of lath, but I believe it serves the purpose. The problem for supply chain executives is to strike the appropriate balance between a supply chain that is too lean (not resilient enough but saves money) and one that is too inflexible (robust and redundant that it is too costly to maintain and remain competitive)

 

 

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