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Management of Supply Chain: X-to-order Concepts vs Make-to-stock Model

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  • Mihiotis A.

Abstract

In a challenging market, companies¡¯ ability to act faster is considered a basic advantage. From a value chain aspect, when a company cannot change its internal production processes and the external supply streams according to the demand requirements, this may lead to sales reduction or stock left-overs. X-to-order concepts [where X=¦¡(ssemble), ¦¬(ake)/¦¢(uilt) and ¦¥(ngineer)], are key types of supply chain planning, where the production process starts after the orders are placed. Those methods have caught the attention of both researchers and businesses because of the advantages they offer in business procedures and the customization of consumers needs. The aim of this paper is to present the framework of supply chain management of the X-to-order concepts in comparison to the make-to-stock model and depict the main differences between these two approaches.

Suggested Citation

  • Mihiotis A., 2014. "Management of Supply Chain: X-to-order Concepts vs Make-to-stock Model," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 5(3), pages 30-33, May.
    • Handle: RePEc:jfr:ijba11:v:5:y:2014:i:3:p:30-33
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    References listed on IDEAS

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    1. Gunasekaran, Angappa & Ngai, Eric W.T., 2009. "Modeling and analysis of build-to-order supply chains," European Journal of Operational Research, Elsevier, vol. 195(2), pages 319-334, June.
    2. van Donk, Dirk Pieter, 2001. "Make to stock or make to order: The decoupling point in the food processing industries," International Journal of Production Economics, Elsevier, vol. 69(3), pages 297-306, February.
    3. Olhager, Jan, 2003. "Strategic positioning of the order penetration point," International Journal of Production Economics, Elsevier, vol. 85(3), pages 319-329, September.
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