1.
MAKE-TO-STOCK:
Make to stock is a technique of production where the products are manufactured or produced on larger scales parallel to the anticipated customer demand.
In a make to stock scenario, the forecasting and the production planning are decoupled by way of having a stock of finished goods. As a result of decoupling, those who are in the production planning are not required to know what could be the exact demand. All that is required is to ensure that actual production replenishes the stock to the desired levels. Thus, as and when the demand materializes for the product, the demand is always met from the stockpile of the goods which are finished. So, the primary objective of the MTS or make to stock is to ensure that the production system responds efficiently to the depletion of the finished goods inventory through the planning system.
Various advantages of the make-to-stock include,
a. Efficient use of the resources.
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