1. What is a benefit of a Make-to-Stock supply chain compared to a Make-to-Order supply chain?
a. There are no lost sales in Make-to-Stock because you know the customer demand exactly before production is started.
b. A Make-to-Stock supply chain is well-suited for customers who are willing to wait for customized products.
c. Make-to-Stock is always able to satisfy customer demands immediately if the product is already produced.
d. With Make-to-Stock there is no leftover inventory, because production only begins after a firm order is received from the customer. This saves on expensive markdowns and disposal costs.
2. In the lecture we discussed the supply chain decision phases as falling into a matrix, comprising the categories Procurement, Production, Distribution and Sales, and into the time frames long-term, mid-term, and short-term.
A semiconductor firm has to decide how much of its production it can produce using its in-house facilities and how much it will need to off-load to subcontractors for the next 4 to 18 months.
Where does this decision fall in the supply chain decision phase matrix?
a. Long-term and Procurement
b. Long-term and Production
c. Mid-term and Production
d. Mid-term and Distribution