5.1 General Motors
‘The euto industry fsa prime candidate for postporiement for many reasons, Fist,
scar ia defined ao 0 modular system of components, This creates opportunity for
commonality by producing a platform and adding modular subassemblies customized
‘according to the make and model and ultimately the ene] user of
As this case points out
f the vehicle. Second,
individually customized vehicles have high forecast variability
there are far too many varieties to accurately forecast each combination and there is
typically disagreement on the forecast within the different divisions of o company 4)
‘Third, care depreciate as soon as they are driven off the lot New modele come out
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