In the assembly manufacturing industry, after receiving the order of the customer, it is the manufacturing system which produces the end product. etc. to narrow sense, after the order deciding last processing of the component and the incoming order process production which does the final assembly are called, in a broad sense production the generality incoming order which includes those is.
It becomes famous the business model of major ?? of PC productionsale (the ??direct model) depending upon, it is known widely as the production sale system of PC. When, "BTO personal computer", you have influence of the manufacturer direct sales where the user can select the type and memory capacity etc. of CPU. Other than PC industry and the match has started in automobile industry.
Former possibility production (MTS) in advance it produces the end product of one fixed quantity in anticipation of demand, it has this as stock. Vis-a-vis this, after with BTO receiving an order, when it produces, the product completes, in order to ship immediately, it does not have finished product stock. As for the largest merit, there is a point there is no unsold item risk which accompanies the change of the market.
After receiving an order, in order to be in time to payment date, you must produce, because, you anticipate generally and production compared toshorteningthe production lead time becomes necessary.
With BTO there is no finished product stock, but usually because it means to have the fixed part intermediate product as stock, the service construction of BOM and the like becomes indispensablefor the efficient management utilization. Furthermore you aim toward the reduction of this intermediate stock,also the solution that is planned final demand (order from the customer) every time, does component order in the supplier, with the mechanism of SCM.
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