If they produce too much they may need to sell surplus at a loss and in producing too little they may miss the market and not sell enough to cover costs.
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Manufacturing Industry
Manufacturing Industry
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Make-To-Stock (MTS)
Make-To-Order (MTO)
The producer waits for orders before manufacturing stock. Inventory is easier to control and the owner does not need to rely as much on market demand.
Make-To-Assemble (MTA)
The factory produces component parts in anticipation of orders for assembly.
Why Manufacturing?
The process of converting raw materials, components, or parts into finished goods that meet a customer’s expectations or specifications.Manufacturing commonly employs a man-machine setup with division of labor in a large scale production. Manufacturing plants often use an assembly line, which is a process where a product is put together in sequence from one work station to the next.
By moving the product down an assembly line, the finished good can be put together quicker with less manual labor. It’s important to note that some industries refer to the manufacturing process as fabrication.
Production tools include machine tools and other related equipment and their accessories and tooling. Machine tools are non-portable, power-driven manufacturing machinery and systems used to perform specific operations on man-made materials to produce durable goods or components. Related technologies include Computer Aided Design (CAD) and Computer Aided Manufacturing (CAM) as well as assembly and test systems to create a final product or subassembly.
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