APICS Certified Supply Chain Professional (CSCP) — Question 511

Which of the following situations is an example of postponement?

Answer options

• A. Shipments are broken down into small groups for reshipment.
• B. Shipments are consolidated immediately for reshipment.
• C. Production begins after a customer order is received.
• D. Partially assembled goods are assembled at a later stage.

Correct answer: D

Explanation

The correct answer is D because postponement refers to delaying the final assembly of products until customer demand is known, which is what happens with partially assembled goods. Option A describes breaking shipments into groups, which does not illustrate postponement. Option B refers to immediate consolidation, which contradicts the idea of delaying. Option C indicates production begins after an order, but does not specifically relate to the assembly process.