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MRP glossary TOP > Production Planning > Parts Stock Production

Parts Stock Production

Thinking of production system from the standpoint of order time, the system where intermediate assemblies are produced based on the anticipation, and after receiving an order the product is produced is called Parts Stock Production, which is often used in the similar meaning to that of Parts Oriented Production System. This is a kind of compromise method between Make to Stock and Make to Order. Its inventory is less than that of Make to Stock, while its lead time is longer. Its inventory of intermediate assemblies is more than that of Make to Order, while its lead time is shorter.


Related term: Production System

Reference:JIT Business Research Mr. Hirano Hiroyuki

Parts Oriented Production System | Production Planning | Planning Bill of Materials