Chapter 2, Problem 2P

Summary Introduction

Interpret:The preferred strategy from ‘make to order’ or ‘make to stock’ to manufacture highly standardized products.

Introduction:‘Make to order’ and ‘make to stock’ are two manufacturing strategies used for producing goods. For the non-standardized products, normal strategy is (and has to be) make to order. For standardized products, the strategy can be either, but is mostly made to stock. This is to get advantages of mass production which results in lower costs. However, many companies use a mix of both the strategies for standardized products.