Assemble-to-Order and Postponement Strategies at ABC Wireless Inc.

ABC Wireless has achieved tremendous success in the wireless telematics industry and in recent years has experienced dramatic growth in both sales and operations. As a result of this expansion, there is increased pressure on the supply chain, specifically on activities related to inventory management. Rising sales volumes, high variability in demand and proliferation of product variety has lead to a surge in supply chain complexity and uncertainty. As ABC’s business has evolved, they have pursued a supply chain strategy focused on reducing manufacturing costs. While this strategy has allowed ABC to benefit from economies of scale, it has hindered their ability to manage or respond quickly to changing demand.