MGT 302 Chapter Notes - Chapter 6: Lean Manufacturing, Convenience Food
8 Jan 2017
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Manufacturing processes are used to make tangible items. Lead time- the time needed to respond to a customer order. At high level, these processes can be divided into three steps: 3) sending the item to the customer. Customer order decoupling point- where inventory is positioned in the supply chain. To allow parts of the process to operate independently, inventory is strategically positioned in the process. Positioning the decoupling points has an impact on how fast a customer can be served, the flexibility the firm has in responding to specific customer requests, and many other trade-offs. Make-to-stock- a production environment where the customer is served on-demand from finished goods inventory. Examples of products (a) televisions (b) clothing (c) packaged food products. Use lean manufacturing to achieve higher service levels for a given inventory investment. Assemble-to-order- a production environment where pre-assembled components, subassemblies, and modules are put together in response to a specific order.
