Decision Issues on Part Supply in Build-to-Order Manufacturing Systems

In Build-to-Order manufacturing systems, products are usually manufactured by a pull system. The manufacturers order only what they need when it is needed. The suppliers are expected to deliver parts as much as needed. When the part demand fluctuates significantly, this places lots of challenges on the suppliers. In this letter, we explore the decision issues regarding part supplies for Build-to-Order manufacturing systems, especially in the auto industry, and suggest how to address them in order to make the manufacturing systems work more efficiently.