Configure-to-Order (CTO) represents the ability for a user to define the component make-up (configuration) of a product at the very moment of ordering that product, and a vendor to subsequently build that configuration dynamically upon receipt of the order. A Configure to Order (CTO) system is a hybrid of make to stock and make to order operations. It is a set of components (subassemblies) that are built to stock whereas the end products are assembled to order. This hybrid model is most suitable in an environment where the time it takes to assemble the end product is negligible, while the production/replenishment lead time for each component is much more substantial. Personal Computer (PC) manufacturing is a good example of such an environment. By keeping inventory at the component level, customer orders can be filled quickly. On the other hand, postponing the final assembly until order arrival provides a high level of flexibility in terms of product variety, and also achieves resource pooling in terms of maximizing the usage of component inventory. Therefore, the CTO manufacturing style appears to be an ideal business process model that provides both mass customization and a quick response time to order fulfillment.
You need to login to view the rest of the content. Please Login. Not a Member? Join Us
Is QuickBooks’ Lack of Automation Holding You Back? View this on-demand webinar and learn how Sage Intacct can: Increase productivity and efficiency in finance; Provide user defined workflows that automate, control, and streamline processes; Deliver integration between financials and other business critical applications. Join our free product portal where you can watch this recorded webinar […]
Learn how you can gain full financial visibility with Sage Intacct’s simple-to-create customized reports and dashboards – even across multiple business entities – without needing to export data to Excel. We provide: Real-time dashboards combining both financial and operational data; Hundreds of pre-built reports with drill-down capability; The ability to “slice and dice” data for […]
WHY CHOOSE US?
Our PASSION for solving problems drives us to DELIVER INNOVATIVE
SOLUTIONS for everyone we work with.