The is known as make-to-stock Quizlet
The shorter the customer lead time, the higher the inventory investment. Show Shows the process of source to make to deliver and how much time and investment it takes for each type of order. The inverted triangles represent customer order decoupling points. Make-to-stock orders: customer lead time is short, and inventory investment is high. Decoupling point is at the end of the make cycle. Assemble-to-Order: Customer lead time is medium, inventory investment is medium, and the decoupling process happens halfway through the make time. Make-to-Order: Customer lead time is longer, inventory investment is low, and the decoupling process happens before the make cycle. Engineer-to-order: Customer lead time is long, inventory investment is low, and the decoupling point is at it's source. many firms serve a combination of these environments and a few will have all simultaneously. The arrows going in a circle has to do with lead time. The order comes in and then goes back out, with the lead time determining the length of time. Make-to-stock typically has the shortest lead time, and engineer-to-order has the longest lead time. Recommended textbook solutions
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What is ATO in manufacturing?Assemble-to-order (ATO) is a business production strategy where products that are ordered by customers are produced quickly and are customizable to a certain extent. It typically requires that the basic parts of the product are already manufactured but not yet assembled.
What are the six types of focus quizlet?Process focus.. Repetitive focus.. Product focus.. Mass customization focus.. Why does the make to order or build to order strategy take longer for customer orders to be filled than the make to stock or build to stock strategy?If your business follows a make to order, the customers will have to wait for the products. As the business will hold production until receiving the order, this will affect leading times, meaning the customer's waiting time will be longer.
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