Production Strategies: Make to Stock-Make to Order- Make to Forecast

925 Words Feb 21st, 2018 4 Pages
This essay attempts to investigate make-to-stock (MTS), make-to-order(MTO) and make-to-forecast(MTF) strategies used in production logistics and find out the ways in which they differ or are similar to push and pull strategies.
Push and Pull are two different strategies used in production logistics. “Push” strategy is characterized by an approach in which production and inventory decisions are based on long-term forecasts whereas “Pull; strategy is characterized by demand of the customers. Push strategy schedules work releases on the basis of demand whereas pull systems authorize work releases based on the system status. In push strategy, the product is “pushed down” to the next level of manufacturing, regardless of whether it is needed or not whereas in pull strategy, the manufacturing of a product is only completed when there is a demand for the product. Margherita Corniani explains push and pull strategies as, “A push strategy refers to the development of processes that emanate from the company and go towards the market: the company invents, develops and proposes a product that is destined to find purchasers. Supply is therefore sustained by the company. A pull strategy is the opposite, because it refers to processes that start from the market and go towards the company: demand requests supply and ‘pulls’ it out of the company. We…

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