Case Study Prompt:

Imagine you manage logistics for a mid$-$sized company. You need to make a critical decision concerning a new product line $($choose a product line of your liking$)$:

Should it be produced using a make$-$to$-$stock strategy or a make$-$to$-$order strategy?

Discussion Questions:

What are the key factors your company must consider when choosing between MTS and MTO for this new product line? Consider some of the following:

Product demand $($predictability$,$ volume, trends$)$

Product customization needs

Acceptable lead times for customers

Cost of production vs$.$ cost of holding inventory

Risk of obsolescence

Analyze the pros and cons of MTS and MTO in general. How do they impact the following:

Customer satisfaction

Inventory management and costs

Production flexibility

Supply chain responsiveness

For this new product line, would you lean toward MTS or MTO? Justify your choice, explaining how it aligns with the discussed factors