Under tailored postponement,a firm produces the amount that is very likely to sell using
A)the lower cost production method with postponement and produces the portion of demand that is uncertain using postponement.
B)the lower cost production method without postponement and produces the portion of demand that is uncertain using postponement.
C)the higher cost production method with postponement and produces the portion of demand that is uncertain using postponement.
D)the higher cost production method without postponement and produces the portion of demand that is uncertain using postponement.

Question

Quizplus · Accepted Answer

Tailored postponement involves producing the amount that is very likely to sell using the lower cost production method without postponement for the certain demand, and then using postponement for the portion of demand that is uncertain, allowing for flexibility and customization.

Under Tailored Postponement,a Firm Produces the Amount That Is Very