The impact of manufacturing and supply chain improvement initiatives: A survey comparing make-to-order and make-to-stock firms

Omega ◽  
2012 ◽  
Vol 40 (2) ◽  
pp. 159-165 ◽  
Author(s):  
Jan Olhager ◽  
Daniel I. Prajogo
Keyword(s):  
Supply Chain ◽  
Make To Order ◽  
Make To Stock ◽  
The Impact

scholarly journals Information Sharing in a Closed-Loop Supply Chain with Asymmetric Demand Forecasts

2017 ◽  
Vol 2017 ◽  
pp. 1-12 ◽  
Author(s):  
Pan Zhang ◽  
Zhongkai Xiong
Keyword(s):  
Supply Chain ◽  
Information Sharing ◽  
Closed Loop ◽  
Collection Efficiency ◽  
Demand Forecast ◽  
Closed Loop Supply Chain ◽  
Make To Order ◽  
Make To Stock ◽  
The Impact ◽  
Demand Forecasts

This paper studies the problem of sharing demand forecast information in a closed-loop supply chain with the manufacturer collecting and remanufacturing. We investigate two scenarios: the “make-to-order” scenario, in which the manufacturer schedules production based on the realized demand, and the “make-to-stock” scenario, in which the manufacturer schedules production before the demand is known. For each scenario, we find that it is possible for the retailer to share his forecast without incentives when the collection efficiency of the manufacturer is high. When the efficiency is moderate, information sharing can be realized by a bargaining mechanism, and when the efficiency is low, non-information sharing is a unique equilibrium. Moreover, the possibility of information sharing in the make-to-stock scenario is higher than that in the make-to-order scenario. In addition, we analyze the impact of demand forecasts’ characteristics on the value of information sharing in both scenarios.

Managing supplier flexibility performance as a relational exchange investment in make-to-stock versus make-to-order production environments

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Divesh Ojha ◽  
Jeff Shockley ◽  
Pamela P. Rogers ◽  
Danielle Cooper ◽  
Pankaj C. Patel
Keyword(s):  
Supply Chain ◽  
Information Quality ◽  
Supply Chain Integration ◽  
Equation Modeling ◽  
Relational Exchange ◽  
Relative Importance ◽  
Content Type ◽  
Make To Order ◽  
Production Environments ◽  
Make To Stock

Purpose This paper aims to develop and test a model of buyer–supplier relational investment that links supply chain integration (SCI) to supplier flexibility performance (SFLEX) advantages in different manufacturing environments. Relational stability (RS) and information quality (IQL) are viewed as key indicators of intermediating commitment investments in supplier relationships to help support supplier accommodations for special requests for order flexibility. The model is applied to investigate the relative importance of manufacturer relational investments with suppliers in both make-to-stock (MTS) and make-to-order (MTO) production environments. Design/methodology/approach A survey of 206 US manufacturing firms was used to test the proposed research model using structural equation modeling and multiple-group analysis techniques. Findings Social exchange investments in relationship stability and information quality are found to fully mediate the positive performance relationship between supply chain integration and supplier flexibility performance for manufacturers. However, the relative importance of each form of investment in enhancing supplier flexibility performance varies based on the buyer’s (manufacturer’s) order fulfillment environment (make-to-stock versus make-to-order). Originality/value The proposed model may assist manufacturers make more informed relational exchange investments and supply chain configuration decisions that most conducive to enhancing supplier flexibility performance for different production environments.

On the Analysis of Supplier-Manufacturer Information Sharing Strategies for Production Scheduling

2011 ◽  
pp. 139-152
Author(s):  
Jairo R. Montoya-Torres ◽  
Gloria L. Rodríguez-Verjan
Keyword(s):  
Supply Chain ◽  
Information Sharing ◽  
Production Scheduling ◽  
Research Topic ◽  
Important Research ◽  
Make To Order ◽  
Important Research Topic ◽  
The One ◽  
The Impact ◽  
Collaboration Strategies

Nowadays, implementing collaboration strategies between the members of the supply chain has been an important research topic to obtain a more reactive and flexible supply chain in the highly competitive markets. However, few studies have been done on the impact of such collaboration strategies at one of the lower short-term decision levels: production scheduling. This paper is devoted to the study of information sharing between the members of a supply chain in a dynamic context. We consider a typical make-to-order direct sell supply chain without finished products inventory, similar to the one implemented by Internet PC sellers. We compare various scheduling algorithms implemented to study different scenarios of information sharing among the members of the chain. We have considered scenarios where no information is shared and scenarios where some or all information is shared. A simulation study is developed in order to get some insights about the impact of information sharing on the performance of the chain. Our results suggest improvement in the performance that shows the importance of collaboration and information sharing between the members of the chain.

Improving Supply Chain Delivery Performance Using Lean Six Sigma

2017 ◽  
pp. 958-980
Author(s):  
Alfred L. Guiffrida ◽  
Kelly O. Weeks ◽  
Lihua Chen
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Six Sigma ◽  
Lean Six Sigma ◽  
Performance Model ◽  
Delivery Performance ◽  
Make To Order ◽  
Make To Stock ◽  
Delivery Models ◽  
Static Point

Models for evaluating and improving delivery performance play an important role in the management of supply chains. A review of supply chain delivery models that use Six Sigma methodologies indicate that the models are limited to only make-to-order supply chains where improvement in delivery performance occurs at a fixed (static) point in time. In this chapter, the authors present a generalized delivery performance model that overcomes these limitations. The model presented here can be used to measure delivery performance in both make-to-order and make-to-stock supply chains and supports improvement in delivery performance over a planned time horizon with definable milestones for attaining targeted levels of improvement. Numerical illustrations of the model are presented.

A Review on Strategic Positioning of Bottleneck around the Customer Order Decoupling Point and Issues on Production Planning in Supply Chain

2016 ◽  
Vol 16 (4) ◽  
pp. 243-254
Author(s):  
Muhammad Saeed ◽  
Samiya Loya ◽  
Adil Loya
Keyword(s):  
Supply Chain ◽  
Capacity Planning ◽  
Strategic Positioning ◽  
Shifting Bottleneck ◽  
Customer Order ◽  
Make To Order ◽  
Make To Stock ◽  
Engineer To Order ◽  
Operational Constraints ◽  
Specific Part

AbstractThe decoupling point separates part of the supply chain oriented towards customer orders from the part based on forecast planning. This paper focuses on identification of bottlenecks and their positioning with respect to customer order decoupling point (CODP) in supply chain continuum. The research is based on a conceptual model that separates engineer to order (ETO), make to order (MTO), assemble to order (ATO) and make to stock (MTS) by a decoupling point. The important feature of this paper is that supply, demand and operational constraints are allocated in specific part of the supply chain, making it more versatile. Shifting bottleneck concepts, including impact of bottleneck position and issues concerning production and capacity planning, are studied extensively to stabilize the supply chain and reduce its complexity.

A Queueing-Game Model for Making Decisions About Order Penetration Point in Supply Chain in Competitive Environment

2013 ◽  
Vol 4 (4) ◽  
pp. 1-24 ◽  
Author(s):  
Ebrahim Teimoury ◽  
Mahdi Fathi
Keyword(s):  
Supply Chain ◽  
Strategic Decision ◽  
Sensitivity Analyses ◽  
Buffer Size ◽  
Inventory Level ◽  
Game Model ◽  
Profit Function ◽  
Make To Order ◽  
Capacity Model ◽  
Make To Stock

This study is dedicated to Order Penetration Point (OPP) strategic decision making which is the boundary between Make-To-Order (MTO) and Make-To-Stock (MTS) policies. This paper considers two competing supply chains in which a manufacturer produces semi-finished items on a MTS basis for a retailer that will customize the items on a MTO basis. The two-echelon supply chain offers multi-product to a market comprised of homogenous customers who have different preferences and willingness to pay. The retailer wishes to determine the optimal OPP, the optimal semi-finished goods buffer size, and the price of the products. Moreover, the authors consider both integrated scenario (shared capacity model) and competition scenario (Stackelberg queueing-game model) in this paper. A matrix geometric method is utilized to evaluate various performance measures for this system and then, optimal solutions are obtained by enumeration techniques. The suggested queueing approach is based on a new perspective between the operation and marketing functions which captures the interactions between several factors including inventory level, price, OPP, and delivery lead time. Finally, parameter sensitivity analyses are carried out and the effect of demand on the profit function, the effect of prices ratio on completion rates ratio and buffer sizes ratio and the variations of profit function for different prices, completion percents, and buffer sizes are examined in both scenarios.

Introduction to Supply Chain Management and Multimodal Logistics

2019 ◽  
pp. 1-28
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Chain Management ◽  
Cost Leadership ◽  
Make To Order ◽  
Leadership Strategy ◽  
Make To Stock ◽  
Engineer To Order ◽  
Focus Strategy ◽  
Cost Leadership Strategy

This chapter provides an understanding of basic essence of supply chain management. It introduces a multi-dimensional facet of supply chain management. A typical supply chain has at least three entities, that is, the supplier, the firm, and its customer. The inter-link between these three entities comprises three primary components of a supply chain, namely, the inbound or upstream supply chain, internal supply chain, and outbound or downstream supply chain. However, in a real-life scenario, many firms (especially in case of large and complex firms), the suppliers, and production centres are more than one. This increases the complexity of the supply chain structure. This concept has been introduced in this chapter. The drivers of supply chain have been categorized under strategic and operational drivers. This aspect has been explained, with examples. The chapter discusses the enablers and inhibitors of a supply chain of a firm. It proceeds to explain the issues in assessing and integrating the drivers, enablers, and inhibitors in the supply chain planning process. Bull whip and snow ball effects are two important outcomes of an inefficient supply chain. These concepts have been introduced here. Finally, the chapter concludes by laying down the objectives and the strategies of supply chain management. It prioritizes the focus of supply chain management, stating that customers come first followed by cost optimization. The chapter discusses on the ways to make supply chain agile and flexible. Supply chains are always prone to disruptions; hence, this chapter talks about a resilient supply chain. Next to customer, cost is an important element that enables a firm to keep its price competitive and be profitable. Here the concept of a lean supply chain has been discussed, a way to minimize waste and hence reduce cost. Supply chain management varies with firms' business strategy. The firm may choose to follow either a cost-leadership strategy or a differentiation or a focus strategy and thus would accordingly adopt push or pull or push-pull (supply chain) strategy. In case of cost-leadership strategy, the firm is expected to follow “make-to-stock” (operations) strategy; in case of differentiation strategy it would adopt “make-to-order” strategy; and for focus strategy the firm embraces “engineer-to-order” strategy. This chapter discusses these aspects to correlate the different dimensions of business and its supply chain management. Firms now are focussing on global operation to leverage on opening up of economy, enabling them to lower the cost of operations and achieve the desired quality. Besides, globalisation has also led to widening of market coverage. A brief introduction to global logistics management has been made in this chapter to emphasise on operationalization of a firms' global supply chain.

Minimizing the ripple effect caused by operational risks in a make-to-order supply chain

2020 ◽  
Vol 50 (4) ◽  
pp. 381-402 ◽  
Author(s):  
Henry Xu
Keyword(s):  
Supply Chain ◽  
Negative Impact ◽  
Design Science ◽  
Original Position ◽  
Ripple Effect ◽  
Web Based ◽  
Content Type ◽  
Operational Risks ◽  
Make To Order ◽  
The Impact

PurposeThis paper aims to introduce a web-based pilot system for minimizing the ripple effect (i.e. spreading of the negative impact of an exceptional event along the supply chain from its original position) caused by operational risks in the context of make-to-order supply chains.Design/methodology/approachThe study employs a design science research methodology, which covers three major stages: system requirements identification, business process design and the implementation and evaluation of a web-based pilot system.FindingsThe developed system has the potential to significantly reduce the negative impact of the ripple effect caused by operational risks in a make-to-order supply chain in terms of material shortages, late deliveries and subsequent additional costs associated with expediting measures when a customer order is running late.Research limitations/implicationsThe system presented in this paper is a prototype that needs to be further developed and tested in the future.Practical implicationsThis paper provides integrated business processes and useful guidelines for supply chain managers and information system developers in dealing with the ripple effect in the supply chain.Originality/valueIn contrast to prior studies that have focused on investigating the impact of the ripple effect on the supply chain caused by natural or man-made disasters, this research attempts to offer a novel approach to address the research problem (i.e. the ripple effect caused by operational risks such as delays) directly from the design science perspective.

Demand Fluctuation and Supply Chain Integration: Case Studies of Japanese Firms

2017 ◽  
Vol 16 (5) ◽  
pp. 564-586
Author(s):  
Mizuki Kobayashi ◽  
Takahiro Tomino ◽  
Junjiro Shintaku ◽  
YoungWon Park
Keyword(s):  
Supply Chain ◽  
Case Studies ◽  
Manufacturing Firms ◽  
Marketing Channels ◽  
Supply Chain Integration ◽  
Japanese Firms ◽  
Make To Order ◽  
Make To Stock ◽  
And Control ◽  
Tremendous Challenge

Abstract Current Japanese oems utilize both make-to-stock (mts) and make-to-order (mto) to cope with demand fluctuation. In this article, we study how leading manufacturing firms utilize mts and mto by observing two case studies, Toyota’s and Omron’s operations in China. Production and delivery of component suppliers are based on the advance notification from their manufacturers. For this, most automotive firms integrate marketing channels internally, however, most healthcare firms do not. Consequently, it is difficult to forecast and control demand accurately like automotive firms. In this sense, for healthcare firms, it is a tremendous challenge to respond to demand fluctuation through integration with external marketing agencies. We show both companies strategies to mix mts and mto along with integrating internal and external parties.

scholarly journals Performance Analysis of Hybrid MTS/MTO Systems with Stochastic Demand and Production

Mathematics ◽  
2020 ◽  
Vol 8 (11) ◽  
pp. 1925
Author(s):  
Dieter Fiems ◽  
Eline De Cuypere ◽  
Koen De Turck ◽  
Dieter Claeys
Keyword(s):  
Random Processes ◽  
Numerical Approach ◽  
Lead Times ◽  
Threshold Policy ◽  
Order Processing ◽  
Processing Times ◽  
Make To Order ◽  
Make To Stock ◽  
Stochastic Setting ◽  
The Impact

We present a comprehensive numerical approach with reasonably light complexity in terms of implementation and computation for assessing the performance of hybrid make-to-stock (MTS)/make-to-order (MTO) systems. In such hybrid systems, semi-finished products are produced up front and stored in a decoupling inventory. When an order arrives, the products are completed and possibly customised. We study this system in a stochastic setting: demand and production are modelled by random processes. In particular, our model includes two coupled Markovian queues: one queue represents the decoupling inventory and the other the order backlog. These queues are coupled as order processing can only occur when both queues are non-empty. We rely on matrix analytic techniques to study the performance of the MTO/MTS system under non-restrictive stochastic assumptions. In particular, we allow for arrival correlation and non-exponential setup and MTS and MTO processing times, while the hybrid MTS/MTO system is managed by an (s,S)-type threshold policy that governs switching from MTO to MTS and back. By some numerical examples, we assess the impact of inventory control, irregular order arrivals, setup and order processing times on inventory levels and lead times.

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