Inventory management in a high technology organization: the impact on consumers from perspective of third party logistics provider

Inventory management decisions are an integral aspect of organisations. This paper addresses two inventory management systems that are evident in the high technology industry being inventory postponement and inventory speculation. Inventory postponement as argued by Bucklin (1965) is where a firm deliberately delays the purchase and the physical possession of inventory items until demand or usage requirements are known with certainty. This is an effective supply chain strategy adopted by high technology organisations by reducing the inventory, and in turn reducing the cost of obsolete stock.