Tuesday 11 December 2018

Strategies for increasing Consumer Demand

What is consumer demand?

Consumer demand and price. The relationship between price and quantity demanded is the starting point for building a model of consumer behavior. Measuring the relationship between price and quantity demanded provides information which is used to create a demand schedule, from which a demand curve can be derived.

In consumer demand meetings, companies are engaged in manufacturing typically implement a production response strategy. So basically, the response is a response from a manufacturing company in the realization of consumer demand in accordance with the time and the amount needed.

Introduction to Strategies for increasing consumer demand

In General, response strategies towards consumer demand Production consists of 5 types, i.e. Design to Order (DTO), Assemble to Order (ATO), Make to Order (MTO), Make to Order (MTO) and Make to Demand (MTD)

  1. Design to Order (DTO)

Is the Design to Order (ETO), the response strategy of the fulfillment of consumer demand. The product is require by consumers / customers to be produce and deliver into the hands of consumers / customers. Manufacturing Companies in question so will do the design process. The production process when there is a definite demand from consumers / customers. The inventory of inventories may be said to be almost "no".

Strategy Design to Order (DTO) or Engineering to Order (ETO) companies that produce new or unique products. Examples include bridges, military products, ships, aircraft, special equipment and building industries.

  1. Assemble to Order (ATO)

The ATO, manufacturing companies will make the standard modules or sub-assembly. That standard so that it can respond quickly to every consumer demand / customers. When Consumers or customers booking, the company will assemble the module or sub-Assembly according to the demand require by the customer / consumer. Essentials, modules or assembly such as those produce before consumers / customers confirm their order placement.

Wrong example Assembly Strategy to Order (ATO) is on computer products. The company will make standard modules such as the module of RAM, hard drive, motherboard, processor and DVD drive. Once receive the order confirmation from Consumer direct. The company doing the Assembly of the modules in question being 1 unit fully equip computer.

The Company implement the strategy of Assembly to Order (ATO). It has risk in storing inventory (standard inventory) of standard modules in question. However, the risk can be minimize by accurate forecasting systems.

  1. Make to Order (MTO)

On the strategy of Make to Order (MTO), the company will only implement the order confirmation from the consumer / customer for a particular product. The customer or customer is usually willing to wait for the manufacturer (manufacturing company) to complete the production. Different by Design to Order (MTO), Make to Order (MTO) is not start from the process of drafting or design are prepare in advance.

  1. Make to Stock (MTS)

Make it a product that has manufacturers and process orders from consumers / customers. Finished goods ready-to-be to be the customer or customer is accept orders from customers by manufacturing companies are concern.

The strategy for Make to Stock (MTS) has a high risk of inventory (inventory) that has to be related to supplies. But the advantage is it can be quickly respond to consumer demand so that customers don't need to wait for a long time to get its products.

The strategy for making stock (MTS) is a product that makes consumer goods such as household appliances, staple ingredients, food products and toys for children. In General, these companies have accurate forecasting systems in reducing the risks facing it.

  1. Make to Demand (MTD)

Make to Demand (MTD) is a relatively new Response Strategy, a strategy was develop to meet the demand of consumers / customers with a faster and more flexible. On the right time in accordance with the request of the customer / consumer. This is a combination of several strategies mention above.

Design (design), raw materials, module or sub-assembly or finish product can be save as inventory (inventory). But the challenges for making it into account are the demand and increase in efficiency and effectiveness in inventory (inventory).

The strategy for dealing with the general system of Just in Time (JIT), Lean Manufacturing and Six Sigma quality control systems.

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