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The shorter the customer lead time, the higher the inventory investment.

Shows the process of source to make to deliver and how much time and investment it takes for each type of order.

The inverted triangles represent customer order decoupling points.

Make-to-stock orders: customer lead time is short, and inventory investment is high. Decoupling point is at the end of the make cycle.

Assemble-to-Order: Customer lead time is medium, inventory investment is medium, and the decoupling process happens halfway through the make time.

Make-to-Order: Customer lead time is longer, inventory investment is low, and the decoupling process happens before the make cycle.

Engineer-to-order: Customer lead time is long, inventory investment is low, and the decoupling point is at it's source.

many firms serve a combination of these environments and a few will have all simultaneously.

The arrows going in a circle has to do with lead time. The order comes in and then goes back out, with the lead time determining the length of time. Make-to-stock typically has the shortest lead time, and engineer-to-order has the longest lead time.

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What is assemble

Assemble-to-order (ATO) is a business production strategy where products that are ordered by customers are produced quickly and are customizable to a certain extent. It typically requires that the basic parts of the product are already manufactured but not yet assembled.

What is assemble

Assemble-to-order is a manufacturing strategy under which the manufacturer stocks up on sub-assembly parts and inventories and assembles the parts into the final product when a customer places an order. The strategy relies on the ability of the company to assemble and deliver goods quickly.

What is the difference between assemble

In make-to-order, products are made from scratch and customized to the customer's specific requirements. In assemble-to-order, products are assembled from previously completed sub-assemblies once an order comes in.

Which of the following production strategies has been traditionally used in mass production to meet an anticipated demand?

Make to stock (MTS) is a traditional production strategy that is used by businesses to match inventory with anticipated consumer demand.