A Study Of Supply Chain Postponement Strategy For Deteriorating Items

The market competition is getting more and more competitive resulting from the global integrated economic. The increasingly individualized market and customer's higher expectation on products and service makes many products soon to be pensioned off. For these changes, most enterprises adopt different modes of production. Postponement strategy can not only satisfy client's individual demand but also control the cost of production, so it will emphatically be studied and applied because of its unique advantage.This paper made a quantitative research into supply chain postponement strategy for deteriorating items. It built up a supply chain cost model on the CODP to be cost-effective, and analysis how the different locations of the CODP influence the supply chain cost. This paper also analysis on the impacts of the decayed rate and other parameters sensitivity on supply chain cost. According to the analysis, the supply chain cost model is a concave function about the different locations of CODP; the higher decayed rate, the later CODP. At the same time, this text still analyzed to the partial postponement about the deteriorating items which had only a product in the supply chain; According to the analysis,we can get that:when we be to take no account of the waiting time, it's better to adopt the postponement strategy rather than the hybrid strategy in the supply chain cost; While considering the waiting time, along with the bigger order arrival rate, the postponement strategy ratio in the supply chain will become higher and higher.