Discuss the postponement concept as it relates to the production and logistics interface.

The postponement concept means the delay of value-added undertakings like assembling something, producing and packaging till the very last moment. Those in production want a single item as a long production run because when more units will be produced, the price per unit will be divided and it will be cheaper.

Now the long production run will obviously result in more units making the inventory larger which also need more or high holding price. For example car manufactures will not full assembly car parts until all located a one primary factory which will be cot reducing in shipping and holding costs until they reach main place where they will be assemble.