Empirical study reveals increased total inventory from isolated firm-level postponement across manufacturers, distributors, and retailers, indicating the necessity of multi-firm coordination.
This paper presents the results of empirical research on the use of time‐based postponement in a supply chain context using data collected from two manufacturers, a distributor, and a retailer. The analysis shows that implementing postponement at the firm level can result in the supply chain carrying more inventory. In order to achieve its full potential, postponement needs to be implemented across organizations in the supply chain.
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García‐Dastugue et al. (2007) studied this question.
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