Essay about The Considerations Required For Process Selection

1505 Words Sep 30th, 2014 7 Pages
According to Schroeder, Goldstein, & Rungusanatham (2011) “the considerations required for process selection include the volume of the product and whether the product is standardized or customized” (p. 78). Typically, “high-volume products that are standardized will be made on an assembly line, and low-volume customized products will be made using a batch or job shop process” (Schroeder et al., 2011, p. 78).

Currently, 85% of eBags product sales are manufactured and drop shipped to customers by luggage manufacturers such as Samsonite, Eastpak, and Briggs & Riley (Schroeder et al., 2011). Therefore, these companies make their own production process and order fulfillment decisions.

The remaining 15% of sales is for private label product sales that eBags personally manufactures using low cost Asian contractors is produced with a batch production process and imported to its Dallas, Texas warehouse facility for shipment to customers. The batch process generally uses “general- purpose equipment” that is flexible and “is characterized by production of batches or products” that move as a group from one operation or work center to the next (Schroeder et al., 2011, p. 81). eBags most-likely uses a made to stock (MTS) for the private label, since this label was created for low-cost but good quality.

Analysis of eBags in the Footwear Industry and Recommended Product Flow Process Based on Type of Customer Order

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