on 05-22-2009 10:54 AM
Dear friends
what is make to order production
sankalp
Please put some efforts to search the forum. Dont post such basic questions.
thanks
G. Lakshmipathi
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Hi Friend,
You use this business process to create a sales order to respond to specific customer requirements by using variant configuration to select the right product characteristics to produce a product that is individually manufactured for a particular customer. Variant configuration helps you to configure complex industrial products. The variant configuration improves the data exchange between the different departments such as sales, engineering, manufacturing, and after market service. It also reduces the failure rate of sales order entries.
As per PP :-
In make-to-order production, the in-house production or procurement of products is only started when the sales order has been received. This business process is suitable for products with short replenishment lead times for the finished product and all incoming assemblies and components. This business process is useful if the costs of procurement and production of assemblies and components is very high; additional storage costs can be avoided in case of incorrect forecasts.
In case of long replenishment lead times for assemblies and components and low costs, forecasting for assemblies is useful in order to reduce the delivery time for the sales order. This business process is used in discrete industries.
Best regards,
Ankur
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