Question

Postponement is:

a. not very effective if a small fraction of demand comes from a single product.
b. effective even if a large fraction of demand comes from a single product.
c. only effective if a large fraction of demand comes from a single product.
d. not very effective if a large fraction of demand comes from multiple products.

Answer 1

Answer:

A. Not very effective if a small fraction of demand comes from a single product.

Explanation:

Postponement is known to be a business strategy that maximizes possible benefits and minimizes possible risks by holding on or delaying in n investment.

Its concept entails in supply chain management where the manufacturer produces a generic product, which can be modified at the later stages before the final transport to the customer.