In an assemble-to-order (ATO) environment, the most assured means to achieving sustained higher fill rates is to focus on which of the following policies?
In an assemble-to-order (ATO) environment, the most assured means to achieving sustained higher fill rates is to focus on which of the following policies?
In an assemble-to-order (ATO) environment, the primary goal is to maintain high responsiveness to customer orders while minimizing inventory costs. Postponement is the policy that aligns best with this objective. Postponement involves delaying the final assembly or customization of a product until an order is received, allowing for greater flexibility and responsiveness to specific customer demands. This approach helps in achieving sustained higher fill rates by ensuring that the product can be assembled quickly according to the exact specifications required, thus meeting customer needs efficiently.
The answer is Postponement B. Module 3 Product design influence.
I am not sure what the answer is but I do NOT think its expediting. This is a strange question.
Postponement" is the most assured means to achieving sustained higher fill rates in an ATO environment
Expediting is making sense to achieve high fill rate Specially that ATO is reacting to orders only
Should the answer be safety stock?
You are correct that having the right stocks of components is crucial in an assemble-to-order (ATO) environment. While A. Safety stock is important, it specifically refers to keeping extra inventory as a buffer to account for variability in demand or lead time. In an ATO environment, postponement (option B) is still the most assured means of achieving sustained higher fill rates, as it allows for greater flexibility and responsiveness to customer demands by delaying final assembly until orders are received. This approach, combined with effective inventory management, including safety stock, helps to maximize fill rates.