Wednesday, March 3, 2010

Customer Order

As I've stated before Lowe's carries many different items in its store which lead us to the conclusion that Lowe's must use different product flow types and when we researched Lowe's customer order process we came up with a similar answer. Lowe's carries items that are produced in different ways because they are demanded differently by the customers.

Make To Stock (MTS)

As we stated before Lowe's uses the Continuous/Assembly product flow to make certain items such as nails, screws, bolts, and etc. So the customer order type that goes hand in hand with that product flow is the make to stock. This means that when the product is made it is then stocked and ready for the customer to purchase it. There is a diagram that explains how this process works where the orders are forecasted and then put into production. In the next stage the finished goods are put into inventory and then finally purchased by the customer and the process repeats over again.


Assemble To Order (ATO)

We also decided that Lowe's probably uses the Assemble to Order process for some of its other items. Assemble to order is relied on more for mass customization of items that can still be produced in a fairly large quantity. Some of Lowe's items such as its furniture cabinets are not mass produced. They are made in parts and then assembled when a customer has ordered them. This is what made us believe that Lowe's also uses the Assemble to Order process.

1 comment:

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