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In this paper we provide some preliminary insights regarding the relationship between the operational policies of manufacturing postponement, centralized distribution and value chain flexibility. Their impact on performance is examined. We considered asset productivity, delivery competence and responsiveness as three aspects of performance. A conceptual model is developed and empirically tested using the structural equations modeling technique. Our results provide strong evidence of a positive relationship between the operational policies and performance. We observe that value chain flexibility mediates the effect of manufacturing postponement and centralized distribution on the performance measures. The implications of our findings are discussed and directions for future research are provided.
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Anand Nair (2005) studied this question.
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