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Production Strategy and Supply Chain

Production Strategy and Supply Chain. Build To Stock BTS Build To Order BTO (MTO) Configuration To Order CTO Push based supply chain BTS Pull based supply chain BTO, CTO. manufacturer. supplier. dealer. customer. retailer. Build To Stock; BTS.

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Production Strategy and Supply Chain

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  1. Production Strategy and Supply Chain • Build To Stock BTS • Build To Order BTO (MTO) • Configuration To Order CTO • Push based supply chain • BTS • Pull based supply chain • BTO, CTO

  2. manufacturer supplier dealer customer retailer Build To Stock; BTS • Based on forecast to determine production plan • Maintain certain level of inventory • Marketing based on available products • Use inventory to satisfy customer orders

  3. manufacturer supplier dealer customer retailer Build To Order; BTO • Based on customer order to determine products • To design or order the components and to assemble the final product after receiving the customer order.

  4. Dell BTO BTO Dell Order (Web) deliver customers First tier suppliers deliver Second tier suppliers …

  5. Configuration To Order; CTO • Store components as the major inventory • Assemble the final product after receiving the customer orders • Quickly response to customer requirements • BTO and CTO are suitable for eSCM

  6. SC Push Pull Point • The upstream of a SC can apply BTS • The downstream of a SC can apply BTO or CTO • Push-Pull Point Push-Pull Point manufacturer distribution supplier customer retailer

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