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MRP glossary TOP > Production Planning > Product Allocation Production

Product Allocation Production

Thinking of production system in terms of allocation target, the system is called Product Allocation Production. In this system, standard products are produced in advance, and these products are provided to the orders from customers, and then they are delivered. This is commonly used when continued make-to-stock production is possible. In this case, the engineering and production are performed earlier than sales, and thus proper demand forecast and rapid development of new products are difficult.


Related term: Production System

Reference:JIT Business Research Mr. Hirano Hiroyuki

Prior Logistics | Production Planning | Product Lead Time