Strategic Response to Consumer Demand

1. Design to Order
Other names : Engineer to Order. The company does not make a product before so had no inventory. If there are orders from customers, the company will make the design, purchase materials, and making products to order. Example : ships, special computers, buildings, bridges.

2. Make to Order
The company only had the product design and some standard material in inventory. Example : handicraft products.

3. Assemble to Order
The company has an inventory of all parts and modules. Example : the automobile.

4. Make to Stock
The company has an inventory of the final product so that the company has a high risk of inventory. Example : apparel, appliances, telephones, toys.

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