What is the main difference between make-to-order and make-to-stock systems

Turn 1
Name: Module 2 for Week 3 Lecturer: OPS571 July
Description:
Turn: 1
Question: What is the main difference between “make-to-order” and “make-to-stock” systems?
Answer: Make to stock or MTS is done when operational managers have production that allows for inventory based off of demand forecasting. Where as Make to order or MTO means orders are made upon order. This allows customers to make more customization with their order.
Player Bids Submitted Bids Won Contracts Complete % Completed on Time % Satisfied on Quality Total Contract Value Account Balance Net Worth Reputation Score Goal Achieved Answer
brooks hale 0 0 0 0% 0% $0.00 $9,813.01 $11,913.01 100 No
&P
&F
Turn 2
Name: Module 2 for Week 3 Lecturer: OPS571 July
Description:
Turn: 2
Question: Why would the quality of incoming raw materials be as important as the cost of those materials?
Answer: Quality is important because it allows customers to have options. When ordering you have to know what quality to order prior to looking at the cost of that material.
Player Bids Submitted Bids Won Contracts Complete % Completed on Time % Satisfied on Quality Total Contract Value Account Balance Net Worth Reputation Score Goal Achieved Answer
brooks hale 0 0 0 0% 0% $0.00 $9,660.58 $11,760.58 100 No
&P
&F
Turn 3
Name: Module 2 for Week 3 Lecturer: OPS571 July
Description:
Turn: 3
Question: What are possible reasons that a firm may choose to carry raw materials in inventory before they are actually required for production?
Answer: So that they dont have to include lead time from the raw material manufacture. This will allow operational managers to start on a product as soon as the get the order.
Player Bids Submitted Bids Won Contracts Complete % Completed on Time % Satisfied on Quality Total Contract Value Account Balance Net Worth Reputation Score Goal Achieved Answer
brooks hale 0 0 0 0% 0% $0.00 $7,730.00 $9,830.00 100 No
&P
&F
Turn 4
Name: Module 2 for Week 3 Lecturer: OPS571 July
Description:
Turn: 4
Question: Why is inventory seen as a form of “waste” in lean systems?
Answer: in a lean system you try to reduce as much cost as possible. Inventory has a cost associated to it. The cost of storing it, inventorying it, and the cost of it if the material goes bad.
Player Bids Submitted Bids Won Contracts Complete % Completed on Time % Satisfied on Quality Total Contract Value Account Balance Net Worth Reputation Score Goal Achieved Answer
brooks hale 0 0 0 0% 0% $0.00 $5,130.59 $7,230.59 100 No
&P
&F
Turn 5
Name: Module 2 for Week 3 Lecturer: OPS571 July
Description:
Turn: 5
Question: In a “just-in-time” system, why is it important to have reliable suppliers?
Answer: With Just in time systems you are relying on your material supplier to have your supplies to you in a quick turn around time. With this system you dont have a lot of built up stock to rely on. This helps managers reduce waste and efficiently manage their employees time.
Player Bids Submitted Bids Won Contracts Complete % Completed on Time % Satisfied on Quality Total Contract Value Account Balance Net Worth Reputation Score Goal Achieved Answer
brooks hale 0 0 0 0% 0% $0.00 $4,264.98 $6,364.98 100 No
&P
&F
Turn 6
Name: Module 2 for Week 3 Lecturer: OPS571 July
Description:
Turn: 6
Question: Why do suppliers offer quantity discounts?
Answer: to promote higher sales. The more stock we take away from them the more they room they have to increase their inventory.
Player Bids Submitted Bids Won Contracts Complete % Completed on Time % Satisfied on Quality Total Contract Value Account Balance Net Worth Reputation Score Goal Achieved Answer
brooks hale 0 0 0 0% 0% $0.00 -$560.62 $1,539.38 100 No
&P
&F
Turn 7
Name: Module 2 for Week 3 Lecturer: OPS571 July
Description:
Turn: 7
Question: Why is inspection of raw materials often an inefficient means of improving the quality of the stock?
Answer: because it requires man hires and employee cost to inspect it. It may be just as cheaper and quicker just to order a new supply of the quality that is needed.
Player Bids Submitted Bids Won Contracts Complete % Completed on Time % Satisfied on Quality Total Contract Value Account Balance Net Worth Reputation Score Goal Achieved Answer
brooks hale 0 0 0 0% 0% $0.00 -$2,385.98 -$285.98 100 No
&P
&F
Turn 8
Name: Module 2 for Week 3 Lecturer: OPS571 July
Description:
Turn: 8
Question: What are the potential costs of carrying inventory?
Answer: potential cost of carrying inventory are the cost of taxes, employee cost, depreciation, insurance, storage, and cost of opportunity
Player Bids Submitted Bids Won Contracts Complete % Completed on Time % Satisfied on Quality Total Contract Value Account Balance Net Worth Reputation Score Goal Achieved Answer
brooks hale 0 0 1 100% 100% $3,000.00 -$2,002.17 $97.83 135 No
&P
&F
Turn 9
Name: Module 2 for Week 3 Lecturer: OPS571 July
Description:
Turn: 9
Question: Why do suppliers offer discounts for orders with longer lead times?
Answer: Because it allows them to have plenty of time to make the product. This allows for other orders to be expedited if need be and also allows room for the unpredictable.
Player Bids Submitted Bids Won Contracts Complete % Completed on Time % Satisfied on Quality Total Contract Value Account Balance Net Worth Reputation Score Goal Achieved Answer
brooks hale 0 0 4 100% 100% $15,600.00 $9,034.15 $11,134.15 250 No
&P
&F
Turn 10
Name: Module 2 for Week 3 Lecturer: OPS571 July
Description:
Turn: 10
Question: In a make-to-order system, which inventory stage (raw materials, work-in-process, or finished goods) is likely to have the highest inventory levels? Which stage is likely to have the lowest?
Answer: Work in process will have the highest inventor levels because they will start working with raw material as it comes in. The lowest would be the finished goods stage. Once the order is made it will be sent out.
Player Bids Submitted Bids Won Contracts Complete % Completed on Time % Satisfied on Quality Total Contract Value Account Balance Net Worth Reputation Score Goal Achieved Answer
brooks hale 0 0 4 100% 100% $15,600.00 $7,540.65 $9,640.65 250 No
&P
&F
Turn 11
Name: Module 2 for Week 3 Lecturer: OPS571 July
Description:
Turn: 11
Question: In a make-to-stock system, which inventory stage (raw materials, work-in-process, or finished goods) is likely to have the highest inventory levels? Which stage is likely to have the lowest?
Answer: the highest level would be the finished goods stage. This will allow operational managers the ability to send a finished order out as soon as it is requested. The lowest level would be raw material. This is because if raw material is in stock it most likely will be sent to production for them to increase thier current finished goods inventory.
Player Bids Submitted Bids Won Contracts Complete % Completed on Time % Satisfied on Quality Total Contract Value Account Balance Net Worth Reputation Score Goal Achieved Answer
brooks hale 0 0 4 100% 100% $15,600.00 $6,488.82 $8,588.82 250 No
&P
&F
Turn 12
Name: Module 2 for Week 3 Lecturer: OPS571 July
Description:
Turn: 12
Question: Why is the reduction of setup times so important in lean manufacturing systems?
Answer: again lean manufacturing system like to get rid of any preventable cost. Setup time is a stand still cost. The lower time it takes to start the process, the faster the cash comes in. It also allows for lower raw material inventory. The additional time it takes to receive raw material can replace the setup time if done correctly
Player Bids Submitted Bids Won Contracts Complete % Completed on Time % Satisfied on Quality Total Contract Value Account Balance Net Worth Reputation Score Goal Achieved Answer
brooks hale 0 0 6 100% 83% $44,850.00 $34,304.32 $36,404.32 317.3416369413 Yes
&P