Certified in Logistics, Transportation and Distribution (CLTD) 2026 – 400 Free Practice Questions to Pass the Exam

The strategy that delays the completion of production until customer demand is more definite is known as postponement. This approach allows businesses to maintain flexibility in their manufacturing and distribution processes by holding off on the final assembly or customization of products until actual customer orders are received. Postponement helps to reduce excess inventory and minimizes the risk of overproduction, which can be particularly beneficial in industries with variable demand or rapidly changing market conditions.

Postponement is particularly effective for products that can be standardized until they are closer to the point of sale, at which time they can be tailored to specific customer requirements. This not only shortens lead times but also enhances customer satisfaction by ensuring that products meet precise demand fluctuations.

Other strategies, like just-in-time production, focus on producing only what is needed when it is needed, while batch production and continuous flow production involve set processes that do not typically incorporate a flexibility element to adapt production completion based on customer demand. These methods may lead to faster production cycles but do not prioritize alignment with confirmed demand in the same way that postponement does.