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Industrial/Discrete Manufacturing - Research Paper Example

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Name: Instructor: Course: Date: Industrial/Discrete Manufacturing Section 1 Analysis Demand is well-known to be the driving factor of any business. Fluctuations in demand patterns differ significantly between industries (Agarwal 2). The clothing industry, for instance, is subject to substantial demand adjustments driven by seasonality as well as business cycles, while the diaper market benefits from a relatively steady demand…
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Industrial/Discrete Manufacturing
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Download file to see previous pages These environments are, for instance, Make-to-Stock environment, Configure-to-Order environment, and Engineer-to-Order environment. The changes, however, can affect the supply chain of a business environment either positively or negatively. It is, therefore, vital for any business to be capable of recognizing the factors that affect the demand patterns and distinguish whether the patterns affect them positively or negatively (Agarwal 2). Findings When demand for products decreases, the supply of the products also goes down. This happens in any manufacturing environment, Make-to-Stock, Configure-to-Order or either Engineer-to-Order. Make-to-Stock is a manufacturing environment that mostly depends on consumer demand forecasts. This means that if demand for goods is low in the Make-to-Stock, then supply will also be low since no goods will be distributed due to the low demand being experienced. Configure-to-Order permits a customer to choose a base product and organize all the variable parameters linked to that product. Engineer-to-Order, on the other hand, refers to a world that allows companies to build unique products that are designed to their customers’ specifications. ...
They should also do away with incentives for consumers that directly create demand accumulation as well as order staging before a replenishment request like volume transportation discounts. Manufactures should also try to understand product demand patterns at every stage of the supply chain. They should minimize the cycle period of receiving projected, plus actual demand information. Manufactures should identify and eliminate the causes of client order decrease or cancellations. They should, finally, offer their products at consistent prices to reduce buying surges that are created by temporary promotional discounts (Agarwal 3). Conclusion For Make-to-Stock manufacturing environment, which are incorporated in diverse supply chains, the production activities and plans are based on demand forecasting from consumers. The products are supplied by stock inventory. Make-to-Stock policies stress on the immediate delivery of products, reasonable prices, as well as superb quality and standard products. The consumers expect that holdups of the products are inexcusable. As a result, the supplier must maintain adequate stock. For Configure-to-Order and Engineer-to-Order manufacturing environments, the manufacturers should maintain a friendly customer base since their sales do not depend on how well they are renowned, but how a customer likes their products (Agarwal 5). Section 2 Analysis A silo behavior refers to the behaviors that companies have of keeping goods for a long period instead of putting them out to the market. The two obvious reasons for this behavior are because the companies anticipate a future price increase of the commodity that they are holding back, or the demand for ...Download file to see next pagesRead More
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