Response from: Dhananjaya Krishna    (10/29/07 12:52pm)

It would be based on four categories of items and their expectations to the market.

Engineered-to-order

Class C (maybe B) items that can be stocked would be an option.

Assemble-to-order
Sub Assemblies that can be stocked

make-to-order
Based on demand pattern and speed-to-market, the BOM level will need to be determined to stock appropriately

make-to-stock
Based on demand pattern and speed-to-market, the end item can be stocked

Response from: Dhananjaya Krishna    (10/29/07 12:57pm)

It would also be based on four categories of items and their expectations to the market.

Engineered-to-order

Class C (maybe B) items that can be stocked would be an option.

Assemble-to-order
Sub Assemblies that can be stocked

make-to-order
Based on demand pattern and speed-to-market, the BOM level will need to be determined to stock appropriately

make-to-stock
Based on demand pattern and speed-to-market, the end item can be stocked

Response from: ehsan    (10/29/07 1:05pm)

Thanks Dhananjaya,

Can you explain a little bit more?

Response from: Dhananjaya Krishna    (04/07/08 5:20pm)

Hello Ehsan
Demand planning for remote locations mandate a lot more analysis and frequent reviews. Based on the type of products the analysis and review will change. In all cases non-perishable items are less intensive than perishable ones. Also in all cases S&OP (sales and operations planning) will help and will require top management commitment.

Make to stock: the products can be stocked and sold at finished goods level.

these parts will have to analysized & planned at finished goods level. Use sales order history for review (pattern)


assemble to Order: the products can be stocked at sub-assembly level and sold at finished goods level (exception after-market).

these parts will have to analysized & planned at sub-assembly level. Use work order history for review (pattern) and/or 2-level MRP planning

Make to Order: the products can be stocked at raw materials level and sold at finished goods level (exception after-market).

these parts will have to analysized & planned at raw materials level. Use Purchase order history for review (pattern) and/or 2-level MRP planning


Engineered to Order: the products cannot be stocked except for a few class C items like nuts, bolts and others (exception after-market).

these parts will have to analysized & planned for effective supplier management and their reliability. Use supplier KPI's to improve performance and concurrent engineering tools