In what way is a universal power supply a postponement strategy?

Ans: HP has two specifications for printers, 110V (North American) and 220V (European).
Engine, the crucial part of the printer is built by HPs partner in Japan who needs
specification of two types of printers at least 14 weeks ahead and the production period
was only 4 weeks. The dilemma is if a universal power supply is used, then HP would have
the flexibility of postponing the specification of the printer engine by at least 2 months in
planning process. On the other hand the production team believed that universal power
supply can enable HP to better respond to the changing demand in the individual markets
and reduce its inventory costs.

What are the costs and benefits of a universal power supply?
Ans:
Costs
If HP sell 450000 units of Rainbow, it will cost approx. $13.5 million in additional
material cost
If the extra cost $30 is charging from the customers, the increase in price may
decrease the revenue. (customers may switch to other products)
Since there is only one supplier of engine, any defect in the product may effect sales
Benefits
Reduced inventory costs

How would such costs and benefits be different over the product life cycle?
Ans: During the ramp up period, the cost of stock out would be high. It would result in loss
of revenue and also future revenue. During maturity stage, the market becomes very
competitive. So the customers would be price sensitive. So even a small increase in price
can be a disadvantage. During the end of life the cost of stock out will be less.