From the course: Operations Management Foundations
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Choosing a production strategy
From the course: Operations Management Foundations
Choosing a production strategy
- As companies seek to create the products customers desire, companies must consider how those items will be created and stored as well as when those items will be created. Effectively, the market you choose will drive your decision. Let's use restaurants as our example. First, let's look at a small shop where they sell slices of pizza. They know what you want. They know you want it fast. They understand that your tastes are not likely to change soon. Therefore, they make a few different kinds of pizza before you even arrive. Perhaps they have cheese pizza, pepperoni pizza, and a veggie pizza. You order slices. They might quickly reheat them. You pay and leave. This is a make-to-stock strategy. They had a finished goods inventory of pizza, but the variety of pizza available was limited. Still, the service was fast, short customer lead times, quality might not have been that high, but it's very likely consistent,…
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