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    Build-to-stock to a build-to-order

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    Compare and contrast both the build-to-stock to a build-to-order supply chain models. What are the advantages and disadvantages of each? Specifically, explain the operational & process relationship between these models with respect to the inventory management and sales forecasting systems? In your own words, what is flow management? Do you agree with this trend? Why or why not?

    From an operations management perspective, how do you go about making a technology investment decision? What factors should you consider and why? Given these factors, is adopting a technology solution always the right decision to solve an operational problem, why or why not?

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    Compare and contrast both the build-to-stock to a build-to-order supply chain models. What are the advantages and disadvantages of each? Specifically, explain the operational & process relationship between these models with respect to the inventory management and sales forecasting systems? In your own words, what is flow management? Do you agree with this trend? Why or why not?
    Supply chain management means:
    "A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Supply chains exist in both service and manufacturing organizations, although the complexity of the chain may vary greatly from industry to industry and firm to firm." By Terry Harison. Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.
    The major challenges of supply chain management are:

    • Making products or services available in a cost-effective manner with the desired quality.
    • Making sure information is available easily to run the supply chain.
    The Push/Pull and Hybrid strategies
    Traditionally, two prevailing supply chain strategies have dominated the Industry. They are push and pull. In the last few years, however, new technologies have enabled the creation of a third strategy, a hybrid push-pull model that offers the best of both worlds without their corresponding disadvantages.

    Push strategy/ Build to supply
    In a push supply chain or build to stock supply chain model, production and distribution decisions are based on long-term forecasts. It is based on anticipated demand. Typically, the manufacturer uses orders received from the retailers' warehouses to forecast demand. The problem with this strategy is that it depends on forecasts from outside the manufacturer's control. For retailers who have negotiated favorable terms, there is little risk: If the inventory doesn't move after a certain period of time, the manufacturer takes it back. For manufacturers, however, there is considerable risk: Quality products may eventually wind up being sold in the closeout market.

    Pull Strategy/ Build for order
    Dr. W. Edwards Deming were a major contributor to this movement. With a pull supply chain or Build for order, true customer demand, rather than forecasts, drives production and distribution. In other words, the manufacturer holds no inventory, but instead produces to order. On the surface, such a system is attractive because it ...

    Solution Summary

    This explains the difference between build-to-stock to a build-to-order supply chain management

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