Make to stock

Various factors can be named that affect the choice of the most suitable manufacturing structure and hence the positioning of the CODP (Olhager 2003) market-related factors such as demand volatility, lead time or product differentiation expectations product-related factors as, for example, product architecture (modularity) and production-related factors, such as production lead time or the flexibility of internal processes. 

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Make-to-order Make-to-forecast Make-to-stock"... 

Nature of the business in terms of customer orders This cheuacterization includes make-to-stock, make-to-order, assemble-to-order, and engineer-to-order. It has a great deal to do with what the detailed business operations ace and how operational and tactical planning is done. Qeariy this categorization has a tremendous influence on the ERP requirements emd on the behavior of the enterprise in its supply chain. More than any other, this characterization determines the nature of the delivery activities and the dependence on supplier relationships. 

Make-to-stock describes an approach in which production is planned and executed on the basis of... 

Make-to-Stock Make-to-Demand Option-to- Order Engineer-to- Order... 

Make-to-Stock Manufacturing Systems or Service Systems where Work Is Done in Advance of Customer Arrival... 

The manufacturing process in make-to-stock firms traditionally produced and supplied product to the distribution channel based on historical forecasts. Products were pushed through the plant to meet a schedule. Often the wrong mix of products was produced, resulting in unneeded inventories, excessive inventory carrying costs, mark-downs, and transshipments of product. 

In contrast to common assumptions in inventory management, the demands of chemicals at chemical production sites are composed by the input and output flows of the related plants instead of a total number of orders within a period. This imphes that the uncertainty covered by safety stocks arises rather from technological sources than from external markets. Moreover, make-to-stock production is predominating in chemical industry because almost all products are commodities. 

If we assume a make-to-stock production when discussing the distribution core process, the Storage Operating Curves, already outlined above in regards to procurement, can be applied. In comparison, with a make-to-order production. 

Dell s package-to-order philosophy differentiated them from the make-to-stock processes of the other computer makers. Initially, Dell avoided retail channels, instead offering every customer the opportunity to order a unique product built to their specifications. The genius behind Dell s direct model was that every PC that was built was pre-paid. The unique configurations coupled with the short lead limes were tough to forecast. 

Quadrant II Efficient Supply Chain Lean for Make to Stock... 

For make to stock companies Higher customer service, and often lower finished goods inventories, at the same time... 

Make - Make to Stock, Make to Order, and Engineer to Order... 

Products are categorized into a push or a pull manufacturing strategy (make to stock or make to order, respectively) based on demand variability and production efficiency. 

Products under the Push system are produced using a make to stock or make to forecast strategy. On the other hand, products under the Pull system are produced using a make to order strategy. 

For Demand Management, Statistical Forecast should be the basis due to the industry still applies the make to stock approach to optimize its asset base and reduce fixed cost. 

Operations strategy refers to the decisions on how the company will produce its goods and services. Examples of decisions are which production strategy will be used (e.g., make to stock, make to order or some combination), what is the best balance between in source and outsource, will the company pursue a low cost offshore manufacturing strategy, just to enumerate some examples. 

The Make-to-Stock (MTS) firm designs and either assembles or manufactures a product that is shipped either to a finished goods warehouse or to a retail store before the customer wants it. This type of product is a standard product and often one that a customer considers either a convenience item or a commodity. There are many examples of these types of products. One example is hand tools. The typical customers for hand tools expect to walk into a retail store, select the tools they want, pay for them, and carry them home. The lead time for the customers is short. It involves only their trip to the store and back. Because the customers cannot have the tools customized to suit their needs, the firm s product designers must work very hard to identify those features and characteristics that the customers want before manufacturing the tools. The manufacturing firm must also forecast customer demand to have... 

Part of the demand management decision was discussed earlier when the firm selected its approach to the market. Is the firm a make-to-stock firm (MTS) Or, is it an assemble-to-order (ATO), make-to-order (MTO), or engi-neer-to-order (ETO) firm These organizational decisions influence the amount of risk the producer faces and the speed at which the product can be supplied to the customer. 

Executing, or execution, processes recognize three supply chain business models Make-to-Stock (MTS), Make-to-Order (MTO), and Engineer-to-Order (ETO). In the MTS company, forecasts drive production requirements. Customer shipments are made from a finished goods inventory. An MTO company has an order in hand before it produces. Boeing s commercial aircraft business and Dell computers are examples. An ETO company must design parts of the product for customer requirements. Each delivered product to a customer is unique. A Configure-to-Order company, not specifically addressed in SCOR, is a hybrid of the MTO and the ETO models. 

Customer service ratio In a make-to-stock company, the percentage of items or dollars shipped on schedule. In a make-to-order company, the percentage of items or dollars shipped on time. Synonymous terms include Jill rate and customer service level. 

Levels (SCOR) SCOR processes decompose to three levels. Level 1 is composed of the five core management processes. Level 2 is the configuration level and depends on supply chain design. Level 2 process examples are a letter and a number, like PP for Plan supply chain and Ml for Make-to-Stock. Configuration types include Make-to-Stock, Make-to-Order, and Engineer-to-Order. Level 3 activities are process elements supporting Level 2. Level 4 processes are company-specihc and fall outside SCOR. 

Make-to-stock An environment in which products are finished before receipt of a customer order. The customer orders are filled from stock. Production orders replenish the stock. (Adapted from APICS Dictionary, 10th edition)... 

P D ratio According to the APICS Dictionary, lOtb edition, P is the manufacturing lead-time. D is the customer required delivery time. If the ratio exceeds 1.0, the customer order will be delayed or production will start as a result of a forecast (make-to-stock). The demand-driven supply chain approach argues that different segments of the supply chain can be driven by either forecasts or actual demand. In general, actual demand is more desirable than forecasts. In this book, we use cycle time to refer to processes for manufacture and distribution and lead-time as a market-driven requirement for delivery. 

Thread A multientity supply chain that uses different Level 2 SCOR execution processes. For example, a Make-to-Stock company supplies a Make-to-Order company. Sphere is a related work with a broader meaning. 

Plambeck, E.L. and Zenios, S.A. 2002. Incentive Efficient Control of a Make-to-Stock Production System. To appear in Operations Research. 

Federgruen, A., Z. Katalan. 1999. The Impact of Adding a Make-to-Order Item to a Make-to-Stock Production System. Management Science 45(7), 980-994. 

Ha, A.Y. 1997. Inventory Rationing in a Make-to-Stock Production System with Several Demand Classes and Lost Sales. Management Science 43(8), 1093-1103. 

Hillier, M.S. 1999. Product Commonality in Multiple-Period, Make-to-Stock Systems. Naval Research Logistics 46(6), 737-751. 

Johnson, M.E., and B. Scudder. 1999. Supporting Quick Response Through Scheduling of Make-to-Stock Production/Inventory Systems. Decision Sciences 30(2), 441-467. 

Perez, A.R, and P.H. Zipkin. 1997. Dynamic Scheduling Rules for a Multiproduct Make-to-Stock Queue. Operations Research 45(6), 919-930. 

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