BAMG 30700 Midterm: Process Analytics Study Guide Part 14
18 May 2018
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Process Analytics Study Guide
• Made-To-Stock (MTS):
o 1. Products are created BEFORE receipt of a customer order
o 2. Customer orders are then filled from existing inventory, and then those
inventories are replenished through production orders
o 3. MTS environments have the advantage of decoupling manufacturing processes
from customer orders
o 4. Customer orders are filled immediately from readily available inventory
▪ also allows the manufacturer to organize production in ways that minimize
costly changeovers and other disruption
o 5. There are risks associated with placing finished goods into inventory without
having a firm customer order or an established need
▪ risks tend to limit MTS environments to simple, low-variety, or commodity
products whose demand can be forecasted readily
• Assemble-To-Order (ATO):
o 1. Products are assembled from components AFTER the receipt of a customer order
o 2. The key components in the assembly or finishing process are planned and stocked
in anticipation of a customer order
o 3. Receipt of an order initiates assembly of the customized product
▪ strategy is useful when a large number of end products based on the
selection of options and accessories can be assembled from common
components
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Process analytics study guide: made-to-stock (mts), 1. Products are created before receipt of a customer order: 2. Customer orders are then filled from existing inventory, and then those inventories are replenished through production orders: 3. Mts environments have the advantage of decoupling manufacturing processes from customer orders: 4. Customer orders are filled immediately from readily available inventory: also allows the manufacturer to organize production in ways that minimize costly changeovers and other disruption, 5. Products are assembled from components after the receipt of a customer order: 2. The key components in the assembly or finishing process are planned and stocked in anticipation of a customer order: 3. Receipt of an order initiates assembly of the customized product: strategy is useful when a large number of end products based on the selection of options and accessories can be assembled from common components, 4.
