Modelling the supply chain cost of operations reordering

Operations reordering is one of the postponement strategies and a process restructuring that involves reordering consecutive stages of the manufacturing process. In this paper, we present a new model to compare supply chain costs between original and reordered operations from the perspective of supply chain management performance. Finally, we analyze the feasibility of operations reordering using an actual case. The results show that the stage having following properties should be planned prior during operations restructuring: longer lead-time, fewer feature choices or the choice probabilities for the options of the feature are more variable. These results are significant when company chooses its postponement strategy.