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jay123 jay123
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5 years ago
Describe the differences among make-to-order, assemble-to-order, and make-to-stock strategies from the producer's and from the customer's perspective.
 
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ashxeveashxeve
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5 years ago
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A make-to-order strategy produces to customer specifications in low volumes; typically using highly divergent job or batch processes that are highly flexible. This level of customization requires a great deal of planning and control by the producer; the customer receives exactly what has been requested which may literally be a one-of-a-kind item. The customer must suffer through a lead time period during which the item is being fabricated. The assemble-to-order strategy produces wide variety from relatively few assemblies in a line or batch process. The process does not require as much flexibility and since the subassemblies are standardized, the production planning and supply chain management is easier for the producer. The customer again receives exactly what is ordered (which may be precisely what was desired) and the item could be one-of-a-kind. Again, the customer must wait for the item to be produced, but this wait tends to be shorter than in a make-to-order system. The make-to-stock strategy allows the producer to manufacture standardized items in high volumes based on a forecast. Production planning and control is much simpler and inventory can be used as a buffer for variable demand. The customer's order is filled immediately and the product is far from one-of-a-kind.
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