End-users with high demands for quick delivery thus make the successful channel lessen its reliance on postponement in favor of an increased level of speculation.Under speculation, goods would be produced in anticipation of orders rather than in response to them. Frequently, the lowest-total-cost channel that employs speculation uses a channel intermediary. Intermediaries specialize in holding finished inventories for the manufacturer (such as a retailer holding finished goods for consumers) in anticipation of sales to end-users. Although speculation is risky and creates costs associated with holding finished goods inventory, it also permits economies of scale in production because it allows the manufacturer to make product in large batch lot sizes.This is something that postponement does not do. Nevertheless, as demand for quick delivery increases, eventually total channel costs rise. This generally results in a higher total price paid for a product supplied speculatively.