0314 Make-to-Stock VS Make-to-OrderA good example of a company that uses the make-to-stock strategy is Apple Inc. Apple uses the make-to-stock process for Macs sold in its Apple stores. The company first estimates the consumer demand for its Mac computers. It then calculates its available manufacturing capacity and the quantities of raw materials it will need to build enough computers to meet consumer demand. Apple's strategy is to purchase raw materials and reserve manufacturing capacity ahead of time to maximize the cost fficiencies of buying materials in bulk quantities and doing large production runs.Apple and its contract manufacturers then produce a specific quantity of each Mac model and ship them from the factory to the Apple stores and other retail outlets for sale. When customers come into an Apple store, they expect that the computer they want to buy will be there and that they can take it home immediately after purchasing it. In contrast, one of Apple's major competitors Dell-employs a make-to-order production strategy. Dell was the first company in the industry to build computers only after they had received a firm order and thus knew exactly what product the customer wanted Because Dell does not have many retail outlets like Apple (although it has recently tested some retail partnerships), the company relies primarily on telephone and internet sales channels for the majority of their sales. In contrast to Apple customers, then, when Dell customers place an order, they anticipate that they will have to wait a few days for the computer to be produced and delivered. After the customer places an order, Dell typically assembles the computer from raw materials it has on hand and then ships it directly to the customer.In essence, the preferences and behaviors of each company's customers determine, to a great extent, the production process for each company. Apples customers want to touch and experience the product in a retail store, whereas Dell's customers are content to buy something over the phone or the Internet. Each company has optimized its production process to match both its specific set of customer requirements and its internal profitability goals and cost structure.What are the advantages and disadvantages of the two strategies? Which strategy do you think is better? Justify your answer. (300-500 words) Arial 2 (19) 0314 Make-to-Stock VS Make-to-OrderA good example of a company that uses the make-to-stock strategy is Apple Inc. Apple uses the make-to-stock process for Macs sold in its Apple stores. The company first estimates the consumer demand for its Mac computers. It then calculates its available manufacturing capacity and the quantities of raw materials it will need to build enough computers to meet consumer demand. Apple's strategy is to purchase raw materials and reserve manufacturing capacity ahead of time to maximize the cost fficiencies of buying materials in bulk quantities and doing large production runs.Apple and its contract manufacturers then produce a specific quantity of each Mac model and ship them from the factory to the Apple stores and other retail outlets for sale. When customers come into an Apple store, they expect that the computer they want to buy will be there and that they can take it home immediately after purchasing it. In contrast, one of Apple's major competitors Dell-employs a make-to-order production strategy. Dell was the first company in the industry to build computers only after they had received a firm order and thus knew exactly what product the customer wanted Because Dell does not have many retail outlets like Apple (although it has recently tested some retail partnerships), the company relies primarily on telephone and internet sales channels for the majority of their sales. In contrast to Apple customers, then, when Dell customers place an order, they anticipate that they will have to wait a few days for the computer to be produced and delivered. After the customer places an order, Dell typically assembles the computer from raw materials it has on hand and then ships it directly to the customer.In essence, the preferences and behaviors of each company's customers determine, to a great extent, the production process for each company. Apples customers want to touch and experience the product in a retail store, whereas Dell's customers are content to buy something over the phone or the Internet. Each company has optimized its production process to match both its specific set of customer requirements and its internal profitability goals and cost structure.What are the advantages and disadvantages of the two strategies? Which strategy do you think is better? Justify your answer. (300-500 words) Arial 2 (19)