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Assemble-to-order


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Assemble-to-order

Assemble-to-order is a production strategy where products are assembled from pre-manufactured components or subassemblies only after a customer order is received. This approach allows for a high degree of customization while minimizing inventory costs and reducing lead times. In an assemble-to-order system, the final product is configured based on the specific requirements of each customer order, enabling businesses to offer a wide variety of product options without the need to maintain large inventories of finished goods. The pre-manufactured components are typically produced in advance based on demand forecasts and are stored until an order is placed. Once an order is received, the required components are retrieved from inventory and assembled according to the customer's specifications. This production method is particularly suitable for products with a modular design, where different components can be easily combined to create various configurations. Assemble-to-order systems often rely on advanced planning and scheduling techniques to ensure efficient utilization of resources and timely delivery of orders. The success of this approach depends on accurate demand forecasting, effective inventory management of components, and a flexible assembly process that can quickly adapt to changing customer requirements. By postponing the final assembly until an order is received, businesses can respond more rapidly to market demands, reduce the risk of obsolete inventory, and improve customer satisfaction by offering personalized products.

Customization, Modular design, Inventory management, Demand forecasting, Order fulfillment, Postponement, Mass customization, Supply chain management

Robert Anderson

CITATION : "Robert Anderson. 'Assemble-to-order.' Design+Encyclopedia. https://design-encyclopedia.com/?E=431315 (Accessed on May 20, 2024)"


Assemble-to-order Definition
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