Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 6.9, Problem 25P
Summary Introduction

Interpretation:Explain the benefitof the ‘principle of postponement’ which can accrue to an automobile manufacturer having two models with different engines.

Concept Introduction:Postponement is a practice to delay (postpone) investing in one or more supply items till a predetermined time/event. This reduces/delays the extent of investment of money and space as far as practical to maximize profits.

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