Warehouse & Logistics Encyclopedia
Your comprehensive guide to warehouse, logistics, and supply chain terminology. Explore over 100+ industry terms with detailed explanations and practical insights.
Make-to-Stock
A production strategy where goods are manufactured in anticipation of customer demand and stocked for immediate sale.
Definition
Make-to-stock ensures product availability for quick fulfillment but may increase inventory holding costs and risk of obsolescence.
Overview
Make-to-stock is common in industries with predictable demand, where companies produce standard items in bulk for quick distribution.
Role
A production strategy where goods are manufactured in anticipation of customer demand and stocked for immediate sale.
Focus
Make-to-stock is common in industries with predictable demand, where companies produce standard items in bulk for quick distribution.
Example
A beverage company produces soda in large batches based on seasonal demand forecasts and stores it in warehouses for distribution.
Benefits
- Immediate product availability
- Simplified production planning
- Economies of scale
FAQs
Q: Can you give an example of Make-to-Stock?
A: A beverage company produces soda in large batches based on seasonal demand forecasts and stores it in warehouses for distribution.
Q: What are the key benefits of Make-to-Stock?
A: Immediate product availability. Simplified production planning. Economies of scale.