What advantages do you see moving make-to-stock to assemble or make to order?
What advantages do you see moving make-to-stock to assemble or make to order?
Advantages of the Assemble-to-Order Strategy
- Lower capital costs. By reducing storage and inventory needs, the assemble-to-order strategy substantially reduces capital costs, such as warehousing and investment in materials and raw supplies.
- Customizability of orders.
- Quick delivery times, even with customization.
What is make-to-stock strategy?
Make to stock (MTS) is a traditional production strategy that is used by businesses to match the inventory with anticipated consumer demand. The MTS method requires an accurate forecast of this demand to determine how much stock it produces.
What are the advantages and disadvantages of make-to-stock policy?
Advantages to MTO include customization for customers, reduction in stock obsolescence and finished goods inventory, and overall waste. Disadvantages to MTO include increased costs and increased wait times for a finished product.
Which of the following is an advantage of the make-to-stock strategy?
The advantages of make to stock include the following: Resource Capacity Planning – When you are relying on sales and demand forecasts for your production, you are able to effectively plan your resources and production to ensure that items are being produced in the most efficient manner.
What is assemble to order strategy?
Assemble-to-order strategy allows a product or service to be made to specific order, where a large number of products can be assembled in various forms from common components.
What is an example of make to stock?
Make to stock relies on reliable forecasts of demand. For example, a fashion company may require demand forecasts for a shoe design broken down by size, color and style variation. When a forecast is off, a color or size ends up overstocked.
What is meant by bullwhip effect?
The bullwhip effect (also known as the Forrester effect) is defined as the demand distortion that travels upstream in the supply chain from the retailer through to the wholesaler and manufacturer due to the variance of orders which may be larger than that of sales.
What are the advantages of stock taking?
Advantages of Stocktaking The importance of stocktaking is clear. It allows you to regularly monitor and increase gross profit, reduce loss, improve control of allowances, and reduce waste.
What is make-to-order strategy with example?
Make-to-Order or MTO is a business manufacturing process where customers customize the product they want to buy. For example, an aircraft maker may have to consider this strategy because airplanes are expensive products. The aircraft maker can make an airplane according to what the customer requires.
What is a master production schedule for assemble to order strategy?
A master production schedule (MPS) is a plan for individual commodities to be produced in each time period such as production, staffing, inventory, etc. The MPS translates the customer demand (sales orders, PIR’s), into a build plan using planned orders in a true component scheduling environment.
Why is the bullwhip effect bad?
Distorted information from one end of a supply chain to the other can lead to tremendous inefficiencies: excessive inventory investment, poor customer service, lost revenues, misguided capacity plans, ineffective transportation, and missed production schedules.
Why do you need a horse racing strategy?
A horse racing strategy helps a bettor to pick the right selections when you want to invest more in a race. It occurred to us that it would be easier for you, the bettor to have a list of some the most effective horse racing betting strategies to boost your potential bets.
Which is better, make to order or make to stock?
The idea of this traditional production strategy is to match your business’s production and inventory with customer demand forecasts. However, this can be tricky and even risky as the slightest miscalculation can mean being left with dead stock, a shortage, or an excess of inventory.
How to choose the best horse betting strategy?
As you select the suitable race, the next step of this strategy is to identify the 3 favourites of the race and analyse their odds.
What makes a successful horse breeding program successful?
The rates of progress that a breeder makes in a breeding program are dependent on four things: Breeding programs have become so specialized (racing, halter, cutting, pleasure, etc.) that the all around horse cannot be competitive in any event. Therefore, breeding programs must be focused on a single goal to be successful.