Lto (Locate-to Order) in Car Bussiness

19 International Conference on Production Research

th

A SPECTRUM MODEL OF ORDER FUFILLMENT STRATEGIES TOWARDS BTO PARADIGM
Yubo. Ma*, Rongqiu. Chen School of management, Huazhong university of science & technology, Wuhan, Hubei province, China * Corresponding author. E-mail: [e-mail]

Abstract Build-to-order is drawing more and more attention by both scholars and practitioners, as a new paradigm expected to overcome the shortcomings of forecast-based production and meet the customer’s need of right specification and acceptable lead time. But there is no a systemic framework to describe the attributes and various order fulfillment strategies of BTO, therefore, the implications and order fulfillment strategies of BTO are confused and misunderstood. In this paper, based on literature review and industry survey, the attributes of BTO, including production strategy attribute, customization content attribute and order type attribute, are ascertained and clarified. Then a spectrum model of order fulfillment strategies towards BTO, consist of sale-to-order, swap-to-order, match-to-order, amend-to-order, hybrid build-to-order, spontaneous build-to-order, configure-to-order, engineer-to-order and develop-to-order, is put forward, integrating various types of theories and application strategies of BTO. At last, the main characteristics and practical implementation of each fulfillment strategies are compared, providing a vision to the decision of adopting order fulfillment strategy for enterprises. Keywords: Build-to-order, Order fulfillment strategy, Spectrum

1 INTRODUCTION Since 1980s, customization and time responsiveness have become the core factors of business competition. In this context, many shortcomings of traditional mass production based on demand forecast has risen to a higher level: customized products are not available and standard products pile to stock, maintaining inventory costs a lot, and in order to deal with unmarketable product

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