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Hi there! In this lecture, you willlearn about the important concept ofthe Customer Order Decoupling Point, and how it relates to four distinct production strategies, namely: Engineer-to-Order, Make-to-Order, Assemble-to-Order, and Make-to-Stock. One important aspect of how firms decide to compete is where they decide to place the market penetration point, also known as the Customer Order Decoupling Point. The Customer Order Decoupling Point separates order-driven activities from forecast-driven activities. Let me explain. Consider an axis from rawmaterials to consumption. If you are a manufacturer, wherewould you store your materials? Perhaps you want to first buymaterials when you have an order, maybe you want to store somematerials as raw materials, perhaps as components, or even finished goods. This is a very strategic decision, withgreat impact on your operation system. If you store most of your products as finishedgoods, you follow a Make-to-Stock strategy.
