Assessing the benefits of the product postponement strategy to mitigate supply chain risks: A real options-based computational model

The purpose of this paper is to develop a model for the quantification of the costs and benefits associated to a specific supply chain risk management strategy, namely the product postponement strategy (PP). To do this we adopt a real option-based approach and apply the model to a numerical example. The application will show the usefulness of the model in supporting the managers´ decision making process on assessing the probabilistic advantages of adopting the PP in risky environments, specifically under conditions of demand and supply disruption.