Dell Computer Make to Order (MTO), Make to Stock (MTS) & Assemble to Assignment

Dell Computer Make to Order (MTO), Make to Stock (MTS) & Assemble to Order (ATO) - Assignment Example The researcher states that the Make to Order process maintains quality and the products can be personalized during manufacturing and delivery that creates value for customers. This process has no finished goods inventory. The make to order has a disadvantage since it has intermittent production. Dell Company can benefit from MTO process due to reduced inventory space and can customize their products. From a tax, related standpoint Dell Company may benefit from the process. In terms of customization, Dell Company can customize their products with materials, size, and color.The Company may benefit economically from the process since assembled goods must have more warehouse space. Delaying assembly until a customer makes an order reduces labor cost for the company before payment. However, the company may experience delays since products take longer to produce and deliver. Customers may opt to make orders from other companies that offer quicker deliver products. Assemble to Order is a pr ocess that involves making a part and sub-assembling the products. The process is completed when a customer makes an order. It is a business strategy in production that produces quickly and customized in certain ways. It requires that basic parts are manufactured but not assembled. When an order is placed, the parts are assembled and sent to the recipient. The process has its own advantages in the sense that it has fewer inventories and the service is faster. Its main disadvantage for Dell Company is that it has WIP inventory. This process is appropriate for a computer industry Dell company can benefit from this when large numbers of sub-assemblies are put together. For example, assembling the motherboard, video cards, fans, and battery power are put in one location and the final assembly of the laptop is made easier when an order is made. It enables Dell Company to push inventory back that makes it possible to receive payments for the hardware before other parts are paid for.