What are the advantages and disadvantages of using a make to order process compared to the advantages and disadvantages of a make to stock process?

What are the advantages and disadvantages of using a make to order process compared to the advantages and disadvantages of a make to stock process?

Advantages to MTO include customization for customers, reduction in stock obsolescence and finished goods inventory, and overall waste. Disadvantages to MTO include increased costs and increased wait times for a finished product.

What are the advantages and disadvantages of a mixed economy?

The mixed economy will tax companies and individuals at different levels, with more government involvement often dictating a higher level of responsibility in this area. What is this? Social services and infrastructure needs are benefits that everyone enjoys, but a high tax rate can also become a disadvantage.

What are the disadvantages of comparative advantage?

Transport cost may outweigh the comparative advantage While the cost of materials and labor overseas may be cheaper than manufacturing them in the same country, the savings may not be enough to outweigh the cost of transport. In some cases, transportation costs may outweigh any comparative advantage.

What are the main advantages and disadvantages of a partnership?

Advantages and disadvantages of a partnership business

• 1 Less formal with fewer legal obligations.
• 2 Easy to get started.
• 3 Sharing the burden.
• 4 Access to knowledge, skills, experience and contacts.
• 5 Better decision-making.
• 6 Privacy.
• 7 Ownership and control are combined.
• 8 More partners, more capital.

What are the advantages of make to order?

Advantages of Make To Order

• Reduces wastage.
• Less inefficiency.
• Greater variety.
• Irregular sales.
• Lengthy delivery time.
• Availability of raw materials.

What is the advantage of make-to-stock?

A big advantage of make-to-stock production is shortened lead times. In these environments, the manufacturers usually utilize repetitive manufacturing to produce batches of similar goods in succession. These products are then available to ship to customers as soon as the orders come in.

What are the disadvantages of a mixed economy?

There is more emphasis on profit at the expense of the welfare of the citizens. There is usually high level of corruption and mismanagement. Wealth is not equitably distributed as there is a gap between the rich and the poor.

What is the advantage of mixed economic?

In a mixed economic system, free markets co-exist with government intervention, and private enterprises co-exist with public enterprises. The advantages of a mixed economy include efficient production and allocation of resources, as well as improvement of social welfare.

What is absolute advantage example?

Absolute advantage is an economic term that describes when one producer of a good or service can make that product at a lower cost than another. For example, Nebraska might have an absolute advantage in producing corn when compared to Massachusetts, even though they are both part of the same country.

What is absolute advantage and comparative advantage?

Comparative advantage is contrasted with absolute advantage. Absolute advantage refers to the ability to produce more or better goods and services than somebody else. Comparative advantage refers to the ability to produce goods and services at a lower opportunity cost, not necessarily at a greater volume or quality.