Dynamic time-based postponement: conceptual development and empirical test

 
 
 
 

Dynamic time-based postponement: conceptual development and empirical test

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Title: Dynamic time-based postponement: conceptual development and empirical test
Author: Garcia-Dastugue, Sebastian Javier
Description: The purpose of this research was to present the conceptual development of dynamic time-based postponement and empirically test it in the context of short-lived products in a supply chain formed by independent firms. Postponement, the deliberate delay of activities, is used to reduce manufacturing and logistics costs while maintaining or increasing product availability. Postponement as described here is time-based because only the time when activities are performed is changed, not the design of the product, the manufacturing process, or the supply chain network. It is dynamic because it represents a method for capturing a number of managerial objectives that change within a short time horizon. The following are the major conclusions of this research: 1. Adapting inventory policies across a supply chain, from speculation to postponement, in short periods results in cost savings to the supply chain while allowing managers to comply with strategic objectives such as meeting strict customer service levels. In this research setting, implementing dynamic time-based postponement resulted in a cost savings of between $5.3 and $6.9 million annually while improving product availability from approximately 92% to 99.5%. 2. Confidentiality remains the biggest hurdle to achieve integration in the supply chain. Despite the closeness of the relationships among the members of the supply chain, there was reluctancy to share cost data. Suppliers felt they were at risk of giving away information that could be used to negotiate better deals. 3. Dynamic time-based postponement represents true implementation of collaborative replenishment because it’s a method for managing the product flow throughout the life cycle of a product across the supply chain. There are three differentiating aspects of this dissertation. First, this is supply chain management research; that is, research that views a supply chain formed by independent organizations holistically and that extends a dyad. Second, postponement is viewed as a dynamic approach based on managers’ willingness to coordinate activities beyond a single firm. Third, in this research, it is recognized that postponement can be implemented by changing the time in which activities are performed, without changing the design of the product, the manufacturing process or the supply chain network.
Permanent Link: http://rave.ohiolink.edu/etdc/view?acc_num=osu1061377587
http://hdl.handle.net/2374.OX/4794
Date: 2003

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