Build-to-order

Asakawa,T., et al. (2006), Build-to-order nanostructures using DNA self-assembly, Thin Solid Films, 509(1-2), 85-93. 

CIRCORTech provides the parts needed to construct a pMS3 system, build to order complete systems, and a wide range of SP76 surface mount components for NeSSl systems. They also provide services for designing and installing their pMS3 systems according to customer specihcahons. 

Ayers and Malmberg (2002) describe a Demand-Driven Supply Chain as one in which the company is trying to shift from build to forecast to build to order discipline. The Demand-Driven Supply Chain is one that derives the information for production and inventory decisions from actual, real-time demand, and not forecasts - even if the forecasts use past sales history as a basis. They also argue that the property of being demand-driven is one of degree ... 

Dell s build-to-order system produces a 160percent return on capital and a stock market valuation to match. During the 1990s, Dell s value increased more than any other company on the New York Stock Exchange. 

From this framework, one can conclude that cost reductions for the innovative supply chain are not necessarily strategic, while those for functional products are strategic. Hacking cost and inventory from a supply chain full of innovative products can be counterproductive. In fact, we also believe that an innovative supply chain can make a functional product innovative. Starbucks and Dell are examples where extended product services turned functional products — coffee and computers — into innovative products. For Dell it was build-to-order for Starbucks it was the ambience of their stores, including music, Internet access, a wide menu, and special cups. 

The sketch at the bottom of Figure 28.10 illustrates the impact of postponement. Here, the two products are not totally independent. They have been engineered to have common components, shown in gray. This is one of the principles behind Dell s success. Using modular components, Dell can build to order. It does not have to forecast end-unit sales at the product level. It can be done at the component level. The benefits of commonality are also demonstrated in the implementation of the 3C approach described in Section 31.4 and Chapter 33 In fact, commonality is the middle C. 

Moses, Scott, Hank Grant, Le Gruenwald, Simin Pulat (2002). Real-Time Due-Date Promising by Build-to-Order Environments, working paper. School of Industrial Engineering, University of Oklahoma, OK 73019. 

Parry G, Graves A (2008) Build to order the road to the 5-day car. Springer, London... 

Business model Make to stock Make to stock Make to stock. Build to order... 

Gunasekaran, A., Ngai, E. W. T. (2005). Build-to-order supply chain management a literature review and framework for development. Journal of Operations Management, 23(5), 423-451. 

After its establishment in 1984, DeU Computer demonstrated an exceptional track record (Kraemer et al. 2000). This was to a large extent due to its business model Dell chose a strategy of direct sales and build-to-order (BTO similar to ATO, see discussion in CM2) management, benefiting from the result that this strategy yields, which is high flexibihty at relatively low costs. For a successful implementation of this strategy, it was identified as crucial to have a... 

Dell s build-to-order system produces a 160% return on capital and a stock market valuation to match. 

This segmentation led to the assignment of inventory categories to each product. There were three high movers, moderate movers, and build-to-order (BTO). Inventory policies for the categories were as follows ... 

Build-to-order. This theme displaced the old method of building to inventory, so any authorized job order would be backed by a customer order. 

Discipline Build-tO Order Implementation requires accurate inventory and bills of material. 

Dell s ability to operate a build-to-order strategy is based partly on the modular design of many of their products but more particularly on a very high level of synchronisation with their suppliers. There is a high level of visibility across the Dell supply chain with suppliers receiving information on Dell s order book every two hours. Ahead of fhis informafion, suppliers are provided with capacity forecasts from Dell fo enable fhem fo produce af a rafe fhat is planned to match actual demand. 

Using the principle of order decoupling (order penetration point) is one way of responding to demand volatility in real time. For example, in a build-to-order (BTO) environment the supplier builds the product from scratch (component... 

Mansouri, S. A., Gallear, D., and Askariazad, M. H. 2012. Decision support for build-to-order supply chain management through multiobjective optimization. International Journal of Production Economics 135 24-36. 

Let us compare a make-to-stock environment like that of L. L. Bean and a build-to-order environment like that of Ethan Allen to compare the push/puU view and the cycle view. 

Information Costs. Although Dell has made a significant investtnent in information technology (IT) to implement its build-to-order model, the majority of these IT costs would be... 

What role does forecasting play in the snpply chain of a build-to-order server manufacturer such as Dell ... 

---