The everyday dream of a marketer to have high profit
maximization through cutting cost is always a daily “brain twister” for
Academic Marketers to formulate a function that can prolong the time when the
company is maximizing profit and minimizing cost.
The theory innovation of Bucklin &
Halpert from American Marketing Association created the
postponement-speculation concept wherein the manufacturing and delivery process
will depends the transportation speed according to the consumer’s demand. Holding the goods in one channel for too long
will fundamentally creates a “bottle-neck” effect that will delay the time and
higher the inventory cost.
On the
contrary, when the stored goods will be delivered at the right time the
tendency will incline towards low selling price due to product supply
overload. For these reasons, the theory
of “Postponement-Speculation” gives more concern observation to the average
cost and the delivery time relative to the procurement and delivery cost and
demand from customers.
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