Browse MBAs SECTION 7: Operations & Supply Chain Management

The Make-to-Order vs Make-to-Stock Advisor

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The Make-to-Order vs Make-to-Stock Advisor

Advise whether I should make to order or make to stock (or where to put
the decoupling point).

The product and process: [DESCRIBE]
Demand pattern: [PREDICTABLE / LUMPY, VARIETY OF SKUS]
Lead time customers will tolerate: [DESCRIBE]
Production lead time: [DESCRIBE]

Provide:
1. The trade-off for my situation (inventory cost vs responsiveness vs
   customisation)
2. Whether MTO, MTS, or a hybrid (assemble-to-order) fits
3. Where to position the decoupling point (how far to build before the
   order arrives)
4. The inventory and service implications of each
5. A recommendation with the conditions that would change it

Tie it to my demand predictability and the lead time customers accept.

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