What are the four levels of customization and at what place does each occur in the supply chain?
What will be an ideal response?
Answer: The four levels ranked from least to greatest customization are make-to-stock, assemble-to-order, make-to-order, and engineer-to-order. Make-to-stock products have no customization and are typically produced in large enough volumes to warrant keeping a finished goods inventory. Assemble-to-order products are customized at the very end of the manufacturing process. Make-to-order products use standard components, but the final configuration of those components is customer specific. Engineer-to-order products are designed and produced from the start to meet customer requirements. Engineer-to-order products are customized upstream from design. Make-to-order products are customized downstream from material sourcing and upstream from fabrication. Assemble-to-order products are customized downstream from fabrication and upstream from assembly/finishing. The text indicates that make-to-stock products are customized downstream from assembly/finishing and upstream from distribution, although this customization may be only in the order quantity.
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