Question No 1.

Evaluate the dynamics of strategy factor driven supply chain design in semiconductors
industry and provide your recommendations to identify the key factors for cost leadership
and supply efficiency?
The semiconductor manufacturing industry is highly capital intensive and is characterized by
high customer expectations, short product life cycles, proliferating product varieties,
unpredictable demands, long and variable manufacturing cycle times, globally distributed
logistics, and considerable supply chain complexities. However, this industry has been driven by
technological innovations rather than supply chain efficiency since its inception, while the
dilemma executives face today is that markets have become more competitive as the
semiconductor industry itself has become more commoditized.
After reading this case study I think semiconductor industry is very dynamic in this era of
technology. Semiconductor industry is at the core of the microelectronics revolution.
According to Porter (1980), the low cost leadership strategy attempts to
increase market share by emphasizing low cost relative to competitors. Cost
Leadership gives the firm defence against rivalry from competitors because
its lower cost means that it can still earn returns after competitors have
competed away their profits through rivalry. A low cost position defends the
firm against powerful buyers because buyers can exert power only to drive
down process to the level of the next most efficient competitor. Low cost
provides defence against powerful suppliers by providing more flexibility to
cope with input cost increases. The factors that lead to a low cost position it
also provide substantial entry barriers in terms of scale. Finally, a low cost
position places the firm in favourableposition vis--vis substitutes. Thus a low
cost position protects the firm against all five competitive forces.
To identify the supply efficiency factors we can say that it depends on the nature of the business.
Every business has different dynamics. Mostly we see these factors to identify our supply chain
efficiency like:

Process of order issuance

unavailability of raw material
lack of utility supplies
insufficient technological infrastructure
culture difference

What are the conditions to build make to stock and make to order integration strategies
within a given supply chain and how it linked with the profitability of the firm?
The processes of make-to-order and make-to-stock are similar at first sight. The major difference
is that in make-to-order, production orders are linked to one or more sales orders whereas in
make-to-stock production, orders are the result of production planning, which in its turn is based
on a sales prediction.
There is a great similarity between the processes but also some important differences that have
implications for the capabilities needed in your ERP system.
Make-to-order:
The ERP system must have a strong and intelligent link between the sales order module
and the production process module in order to transfer sales orders into production
orders.
Monitoring of individual production orders must be possible in order to meet the
customers demands and to keep them informed about the progress of their orders.
Production orders must trace back to sales orders.
The ERP system must enable a highly flexible processing of orders in order to meet
irregular sales demands.
The ERP system should strongly support the inventory manager and the purchasing
department, to ensure an uninterrupted flow of components and to keep stocks as low as
possible.
You should take measures to reduce the risk of inefficiency and wastage.

Make-to-stock:

 The ERP system must have strong statistical capabilities in order to support the sales
forecasting process. Of course sales forecasting relies mainly on market expectations and
projections but the statistical data provided by the ERP system is useful additional
information.
The sales forecast will be transformed into a production planning, similar as in make-toorder production.
Make-to-stock leads to an evenly spread production schedule which is good for efficiency
and effectiveness.
However there is still need for flexibility to adjust to suddenly changing market
circumstances.
Purchasing must take into account the projected future need for components in relation to
already fulfilled production quota.
In the end, no matter which process gives you the profit, the goal remains the right product, in
the right quantity, at the right place, at the right time, which your ERP needs to rise to the
challenge of supporting.
Question No 3
Select an Industry in Pakistan to provide their recommendations for either adapting make
to stock or make to order supply chain strategy?
Make to order (MTO) is a business production strategy that typically allows consumers to
purchase products that are customized to their specifications. The make to order (MTO) strategy
only manufactures the end product once the customer places the order. This creates additional
wait time for the consumer to receive the product, but allows for more flexible customization
compared to purchasing from retailers shelves.
I think textile industry can adopt this supply chain strategy because make to order (MTO)
strategy relieves the problems of excessive inventory that is common with the traditional make to
stock (MTS) strategy. Dell Computers is an example of a business that uses the MTO production
strategy.
In textile industry of Pakistan if a brand which is dealing with the casual dress for men like
Uniworth they can start this activity in their stores like if they give the choice to customers that

they can choose their styles according to their desire and fashion sense this will create more
customer value and brand loyalty.