Above manufacturing is an example of? make to order, assemble to order, make to stock, all above
Answers
Answer:
There are many production modes available and often the products or the market will determine which mode is required for a manufacturer.
Three of the most common modes of production are Make to Stock (MTS), Make to Order (MTO) and Assemble to Order (ATO). Make to Stock is used for high volume goods, commodified products, consumables and other product types where consumers purchase the same version of a product as a single unit or in bulk. It is a “push” production method used to provide a steady supply and stock for retailers.
Of the remaining two, MTO and ATO are similar. Make to Order (MTO) is a manufacturing mode where production begins once an order is received. It is a “pull” type production mode where demand in the form of an order triggers production. MTO is used on goods where the order is a quantity of one or a few and in situations where all or part of the order may be custom made or carry a high unit cost. Many of the components and raw materials may require sub-processing or rendering before they find their way into the final product.
Video tutorial on how to manage Make-to-Order Manufacturing with MRPeasy: