Lean Supply Chain Management Essentials

28 Lean suppLy ChaIn ManageMent essentIaLs

e three displays have different data elements on them; for instance, the make-to-

stock display has inventory while the make-to-order has customer order backlog. e

finish to order has both, since both are being managed.

ese three different displays are necessary because we’re dealing with three dif-

ferent variables. Obviously, the make-to-stock display is dealing with an inventory of

finished goods that we allow to grow or shrink according to demand. In the make-

to-order environment we are either adjusting capacity to match demand or managing

a customer order backlog, which we also allow to grow or shrink according to the

demand level. e finish-to-order display must accommodate both an inventory of ...