Question

Which of these statements is true?

Answer 1

Answer:

b. The key to mass customization is postponement.

Explanation:

In many mass markets, companies are facing a predicament. On the one hand, customers are demanding that their orders be fulfilled ever more quickly. On the other hand, they are demanding highly customized products and services. Even without trying to customize their products, most companies have found it difficult to fulfill orders swiftly and at an acceptable cost. Is it possible, then, to mass-customize products, deliver them rapidly, and at the same time reduce costs?

The KEY TO MASS CUSTOMIZING EFFECTIVELY IS POSTPONING the task of differentiating a product for a specific customer until the latest possible point in the supply network (a company’s supply, manufacturing, and distribution chain). Instead of taking a piecemeal approach, companies must rethink and integrate the designs of their products, the processes used to make and deliver those products, and the configuration of the entire supply network. By adopting such a comprehensive approach, companies can operate at maximum efficiency and quickly meet customers’ orders with a minimum amount of inventory.

Answer 2

Answer:

The correct answer is letter "B": The key to mass customization is postponement.

Explanation:

Mass customization refers to manufacturing goods in large scales tailoring certain features to meet consumers' special demands. While engaging this type of production, companies prefer the postponement of orders because customization could take time to process. This opposes regular mass-scale production where firms worry only for manufacturing goods and delivering them to retailers as soon as they request it.