E$.$S$.$ has been having difficulty accurately forecasting the demand mix for the finish color

$($grey$,$ blue, red or green$)$ of their top$-$selling model, the H$-1$ model. Currently, E$.$S$.$ assembles

the models based on the demand mix forecast and stocks the finished grey$/$blue$/$red$/$green

products accordingly.

OPMA $317($Winter $2024)$ Supply Chain & Quality Management Assignment Page $3$ of $12$

The most cost$-$effective process to assemble the models as follows:

Recently, E$.$S$.$ has received multiple complaints from a major customers because they couldn$$t

ship enough green versions of H$-1.$ This resulted in stockouts and lost customers.

E$.$S$.$ found that they actually had extra H$-1$s available in their finished goods stock, but

they were the wrong color $($grey$,$ blue or red$).$ As a temporary measure, shipping employees at

the warehouse have been removing the plastic outer casings from some of the finished products

and replacing them with spare green casings. Although this has slightly helped the situation, it

has caused chaos in E$.$S$.$s administration system $($invoicing$,$ inventory records, etc.$)$ and

substantially increased costs. Specialized tools are required to attach the outside casing, and a

customer cannot make the change on their own. In addition to the shipping employees' labor

costs, each model with the casing swapped has to be completely re$-$packaged.

E$.$S$.$s management knows $$there has to be a better way.$$ Management has heard about

the supply chain management concept of $$postponement$$ but is unsure of how to best apply it

to their situation. They are looking for your insights, specifically:

a$)$ Which type of postponement could be used to help address the problem described above?

$(1$ mark$)$

b$)$ What are some of the operational changes required to successfully implement the

recommended type of postponement at E$.$S$.?(3$ marks