Producing to Order

What is producing to order?

Producing to order is an approach to the production of an item that begins only after a customer order is received

What are the benefits of producing to order?

• Lower levels of finished goods in inventory = lower inventory holding costs and less risk of obsolescence

• Greater customer satisfaction = customers get what they want

What are the drawbacks of producing to order?

• The capacity to produce to order may be limited; although mass customisation is automated, it doesn’t work for all products

• It may be difficult to handle sudden or unexpected increases in demand

What is an example of producing to order?

Most restaurants match demand with supply by using produce to order. You order what you'd like from the menu and the production process begins! As a restaurant customer, you might make some specific requests about your food which can be incorporated into production