What is it about?

Postponement is a production strategy that is very effective in mitigating risk of demand uncertainty. While this strategy is widely used, we study a special application in juice production where stored apples are subject to deterioration.

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Why is it important?

We offer a simple decision making model that producers can use to mitigate risk uncertainty. The model can be used not only by juice producers but by any producer of food or dairy products.

Perspectives

This paper is part of a research project that I started few years back in an attempt to help apples growers, the weakest link in the apples supply chain, make the best of their crops. With difficulties in selling apples in the primary market for decent price, juice producers offer an alternative market for the growers. I hope that by helping the juice producers optimize their production operations, the benefits will be shared with growers, some of whom are in dire need to sell their crops.

Dia Bandaly
Lebanese American University

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This page is a summary of: Postponement implementation in integrated production and inventory plan under deterioration effects: a case study of a juice producer with limited storage capacity, Production Planning & Control, July 2019, Taylor & Francis, DOI: 10.1080/09537287.2019.1636354.
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