A computer manufacturer has a single distribution center (DC) that ships personal computers to the USA, Germany, Brazil, and Australia. The computer power supplies are added at the distribution center.
This kitting process is an example of:
A computer manufacturer has a single distribution center (DC) that ships personal computers to the USA, Germany, Brazil, and Australia. The computer power supplies are added at the distribution center.
This kitting process is an example of:
The kitting process, where computer power supplies are added at the distribution center before shipping to various countries, is an example of postponement. Postponement involves delaying the final assembly or customization of a product until the latest possible point, which in this case, occurs at the distribution center. This strategy helps in reducing inventory costs and catering to specific market demands more effectively.
I think the answer is B
postponement requires that the product be designed for modification after final assembly (e.g., downloading software specific to each order into a computerized product). It also requires an assembly area within the warehouse and procurement for inventory necessary for product customization.