A somewhat successful computer manufacturer makes a generic computer in five exciting colors. Once orders are received, the computer guts are encased in the customer's choice of colored case at the factory. This approach to production is known as:
A) channel assembly.
B) postponement.
C) strategic sourcing.
D) strategic production.

Question

Quizplus · Accepted Answer

The approach described is postponement, as the company is delaying the final customization of the product until the customer has placed an order. This allows for greater flexibility in production and can help to reduce costs associated with excess inventory. Channel assembly refers to the distribution process, while strategic sourcing and production are broader concepts related to procurement and operations management.

A Somewhat Successful Computer Manufacturer Makes a Generic Computer in Five