A company produces and distributes a family of soft drinks in a single country. It has developed and will introduce a new family of soft drinks for weight- and health-conscious individuals. There currently are no competitors with nationwide distribution for this category of soft drinks. Which of the following supply chain strategies would be most appropriate for the two product families?
Producing the current product family to order ensures that production aligns with actual demand, minimizing excess inventory and waste for an already established product. For the new product family, producing to forecast is optimal given the absence of competition and the uncertainty of demand. This proactive approach helps meet anticipated demand for a new market segment, ensuring that the product is readily available to potential customers without delays.
Why not A?
Produce the current product family to order: This helps in aligning production with actual demand, reducing the risk of excess inventory for the existing product family. Produce the new product family to forecast: Since there are no competitors with nationwide distribution for this category of soft drinks, the company can use forecasting to estimate the demand for the new product family. This allows for a proactive approach to meet anticipated demand.
It should be A, how can you introduce a new fast moving product [drink / food] is your SC model is based on make-to-order. It doesn't make sense... No one will buy it if they have to wait