Supply Chain
I) Give an example for each one of the four types of supply chain, and then determine which type your company is adopting.
1. Integrated Make to Stock
In this model, supplier make products in advance of demand and holds them in finished goods inventory, satisfying demand from that inventory as orders come in. The customer has little direct involvement in deciding the product features. In this environment, suppliers manufacture the goods and sell from the finished goods inventory and so this strategy relies on demand forecasts to determine how much inventory to build and where to hold it.
An example is major oil companies, such as Mobil that places sensors in each tank at each gas station or retail outlet they serve. The sensors measure in real time the level of gas. Mobil can then use this information for shipment inventory and production scheduling decisions. Such information is integrated further down the supply chain to the procurement function, so that input materials can support the modified production plans and schedules.
Another example of a company following this model is Sony. With the classic make-to-stock strategy, inventory is produced in advance of and "pushed" down the chain toward consumers so that it will be on hand when they go to buy it.
2. Build to order (BTO)
BMW: Automotive industry is one of the industries where build-to-order has shown good results. Automobile manufacturer always wants to build cars on orders since the birth of mass production, and build-to-order strategy let them do that. Information technology is the enabler that made it happen, by bringing all stakeholders on one platform.
In the premium segment of Germany’s automotive industry, the share of customized BTO cars traditionally is comparatively high. Nevertheless, German car manufacturers have spent a lot of efforts in recent years to further increase this share in order to realize short delivery times, high delivery reliability and a fast responsiveness.
In the
1. Integrated Make to Stock
In this model, supplier make products in advance of demand and holds them in finished goods inventory, satisfying demand from that inventory as orders come in. The customer has little direct involvement in deciding the product features. In this environment, suppliers manufacture the goods and sell from the finished goods inventory and so this strategy relies on demand forecasts to determine how much inventory to build and where to hold it.
An example is major oil companies, such as Mobil that places sensors in each tank at each gas station or retail outlet they serve. The sensors measure in real time the level of gas. Mobil can then use this information for shipment inventory and production scheduling decisions. Such information is integrated further down the supply chain to the procurement function, so that input materials can support the modified production plans and schedules.
Another example of a company following this model is Sony. With the classic make-to-stock strategy, inventory is produced in advance of and "pushed" down the chain toward consumers so that it will be on hand when they go to buy it.
2. Build to order (BTO)
BMW: Automotive industry is one of the industries where build-to-order has shown good results. Automobile manufacturer always wants to build cars on orders since the birth of mass production, and build-to-order strategy let them do that. Information technology is the enabler that made it happen, by bringing all stakeholders on one platform.
In the premium segment of Germany’s automotive industry, the share of customized BTO cars traditionally is comparatively high. Nevertheless, German car manufacturers have spent a lot of efforts in recent years to further increase this share in order to realize short delivery times, high delivery reliability and a fast responsiveness.
In the