What product design strategy shifts product differentiation closer to the consumer by postponing identity changes (such as assembly or packaging) to the last possible supply chain location?

• A. Modular design
• B. Postponement
• C. Mass customization
• D. Standardization

Answer: (B)

Postponement is a strategy that delays final product differentiation until the latest point in the supply chain. By keeping components generic and postponing assembly, labeling, or packaging changes, the exact product identity is determined only after demand is known, bringing customization closer to the customer. This approach reduces risk of unsold variants, lowers finished-goods inventory, and improves responsiveness because you can serve multiple variants from a single base setup. For example, a computer manufacturer might ship a neutral chassis with basic parts and only finalize the specific model and branding at the regional distribution center after an order is received. Modular design focuses on building with interchangeable modules rather than where the final identity is added, while mass customization is the broader goal of delivering customized products and may use postponement as a method. Standardization aims to reduce variation, not delay differentiation in the supply chain.