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Understanding Supply/Demand Strategies: Engineer-to-Order, Make-to-Order, and More

This week, we delve into various supply/demand strategies, including Engineer-to-Order, Make-to-Order, Make-to-Forecast, and Assemble-to-Order. These terms can be confusing, but comprehending them is essential for effective production planning and inventory management. We also analyze Dell's strategy of offering cheaper, ready-made PCs, demonstrating how businesses adapt to meet customer demand while optimizing their supply chain efficiency. Join us as we clarify these key concepts in supply chain management.

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Understanding Supply/Demand Strategies: Engineer-to-Order, Make-to-Order, and More

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  1. Week 05B - Supply/Demand Strategies

    Engineer-to-Order, Make-to-Order, Make-to-Forecast, Assemble-to-Order SJSU Bus 140 - David Bentley
  2. Confusing Terminology Dell offering cheaper, ready-made PC No.1 personal-computer maker Dell Computer, which made its name by selling made-to-order computers directly to customers, Friday took a small step away from that strategy by selling a ready-made PC with a much lighter price tag.  The introduction of the $599 computer, priced $100 below any of Dell’s other offerings, comes as PC makers slash prices to gain incremental business amid sluggish demand.  The SmartStep 100D can already be purchased but will be officially introduced Monday. The product will do battle with the retail offerings of Compaq Computer and Gateway, which unlike Dell, sell some of their computers in retail stores. from San Jose Mercury News 10/27/01 SJSU Bus 140 - David Bentley
  3. Supply/Demand Strategies Engineer-to-Order (ETO) Make-to-Order (MTO) Assemble-to-Order (ATO) Make-to-Forecast (MTF) Also called Make-to-Stock (MTS) SJSU Bus 140 - David Bentley
  4. Engineer-to-Order (ETO) Demand lead-time includes all of the following: Design to customer specifications Procurement of raw materials Manufacturing of components Assembly of product Delivery to customer Associated with Project type of operations SJSU Bus 140 - David Bentley
  5. Make-to-Order (MTO) Demand lead-time includes: Procurement of some materials (maybe) Manufacturing of components Assembly of product Delivery to customer Assumes design already exists Associated with Batch (Intermittent)type of operations SJSU Bus 140 - David Bentley
  6. Make-to-Forecast (MTF) Demand lead-time includes: Delivery to customer Assumes design, procurement of raw materials, assembly of product complete Associated with Repetitive and ContinuousFlowtypes of operations SJSU Bus 140 - David Bentley
  7. Assemble-to-Order (ATO) Demand lead-time includes the following Assembly of final components Delivery to customers Lower level component assemblies built per forecast Associated with hybrid manufacturers (moving towardRepetitive from Batch) – Mass Customization SJSU Bus 140 - David Bentley
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