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Make To Stock (MTS)

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According to the market demand, customers expect to find goods at the market all the times when they need them. In this case, manufacturers must ensure goods are available at the retailers shelves within the customers reach.

For this reason, they produce goods that are going to meet the customer needs at all the time. Therefore, manufacturers produce goods to stock at the warehouse ensuring they meet the market demand.

However, they must be careful to ensure that there are no stock outs and at the same time, they must ensure that there are no wastages (Beaumont 2009). This strategy of manufacturing to stock is referred as make to stock.

The advantages of this strategy are that it is cost effective. This is because it serve the needs of customers and saves manufacturers the trouble of failing to fulfill the customers need.

Write My Essay-UK Writing Service On the other hand, this strategy has disadvantages affecting it. According to market demand, fluctuations are constant making it impossible for manufacturers to establish the amount of stock to produce for purposes of meeting the market demands.

In some cases, they might make fewer products assuming the demand would be less. Instead, demands rises causing stock outs. This will cause the company to lose many customers. On the other hand, they might make many goods in anticipation of a high demand. Instead, the demand goes down leading to massive losses (Beaumont 2009).

Make To Plan (MTP)

There are many times when a customer offers to wait while his or her products ordered pass all the manufacturing processes. For instance, when a customer needs a house, the customer may wait until the house is built.

However, there are certain instances where customers are impatient and they cannot wait for their goods to pass through all the manufacturing processes. Therefore, manufacturers have to find ways to buy time for the purposes fulfilling customer needs. Write My Essay-UK Writing Service

In this case, they may decide to hold stocks on the shelves for the customers (Beaumont 2009). This strategy of holding stocks for the customers is referred to as make to plan manufacturing strategy.

Assemble To Order (ATO)

This is where manufacturers make all the necessary parts required to complete a certain product. However, they do not assemble the parts until the customer has confirmed the order. In this case, manufacturers have the advantage of producing parts according to market demand of the product.

This ensures they do not have stock outs or redundant stocks. Additionally, it ensures that they do not assemble products leading to wastage due to lack of customers. It can be noted that assemble to order is a mixture of make to order and make to stock (Beaumont 2009).

The parts are produced based on make to stock while assembling of the parts is made based on make to order.

Engineer To Order (ETO) Write My Essay-UK Writing Service

Products come in different varieties based on customer specifications. For this reason, companies tend to produce what the customers want. According to unspoken laws of business, the customer is always the king.

However, certain products or goods are produced in accordance to the customer specifications. Additionally, these goods may not be needed by other customers. This is because only one customer wants them.

An excellent example of these products is the different computer packages. Therefore, manufacturers do not produce them until the customer confirms the order.

Moreover, manufacturers cannot make more than one in anticipation of demand since there are no other customers who will buy the product (Beaumont 2009). This strategy employed by the manufacturer is referred to as engineer to order.