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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
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