Difference between revisions of "M1"

Revision as of 03:25, 5 October 2017

The collection of processes associated with producing generic products for replenishment purposes. The purpose of Make-to-Stock is to produce sufficient products to support actual and forecasted demand for a given period and achieve a planned level of inventory or no inventory.

Make-to-Stock is a supply chain configuration of the Make process that aggregates and de-aggregates demand. This generally involves P processes to determine the optimal quantities and mix to produce. Aggregation of demand implies that there is no direct link between customer orders and production orders (except at the aggregate level). A customer order cancellation may or may not result in a change in production orders.

Make-to-Stock is the Make process that facilitates the MTS Supply Chain Strategy.

Use Cases

• High volume, low value supply chains
• Replenishing a base product or sub assembly required by Customization Postponement*
• Supply chains where manufacturing and distribution lead times exceed customer accepted order cycle times
• Manufacturing facilities where products that cannot manufactured daily (color-wheels, change-over inefficiencies)
• Products where stock-outs shall not happen (mission-critical, lost sales)
• Manufacturing capacity requires producing ahead to support seasonality

Notes

*) Customization Postponement is a Make-To-Stock process requiring a semi-finished product in generic stock (prior to customization), typically positioned by a Make-to-Stock process. Supply Chain Costs Cost of Goods Sold Orders Damage Free Ratio Orders Defect Free Ratio Make Cycle Time Cash Conversion Cycle Days of Inventory Bill of Materials Manufacturing BOM Plan-to-Produce