.		.	INTRODUCTION Production Management or often called Production and Inventory Management (PIM) can be defined as the design, operations, and control of systems for the manufacture and distribution of products. PIM has three levels of applicability in the logistics chain: the retail level, the wholesale (warehouse) level, and the manufacturing level. PRODUCT POSITIONING STRATEGY In Production Management, there are three product positioning strategies which refer to the type of inventory an organization chooses to maintain. They are:   Make finished product to stock (maintain and sell from finsihed product inventory). Assemble finished products to order (maintain an inventory of components, subassemblies, and options) Custom design and make finished products to order (maintain a stock of commonly used material) Make-to-Stock The positioning strategy of make-to-stock emphasizes immediate delivery of good quality, reasonably priced, off-the-self, standard items. In this environment customers are not willing to tolerate a delay in receiving the products. A company is required to maintain a stock of finished goods.

Assemble-to-Order

This positioning strategy is to supply a large variety of final products from standard components and subassemblies within a short assembly lead time. In this positioning strategies, options, subassemblies, and components are either produced or purchased to stock. By stocking a small supply of components and subassemblies, the manufacturer can quickly assemble any one of an almost limitless number of possible configurations.

Assemble-to-Order

This positioning strategy is to provide the technical ability to produce special products. The final product is usually a combination of standard components and other components custom designed for the customer. The manufacturer often purchases materials after the order is placed.

PROCESS POSITIONING STRATEGY (Production Process Design)

There are three traditional designs that are useful in classifying production process environments. These designs are called Flow Shop manufacturing, Job Shop manufacturing, and Fixed Site manufacturing. A table below depicts a classification of process and their typical layouts and product positioning strategies.

Flow Shop

The Flow Shop is sometimes called a product layout because the product always follows the same sequential steps of production. There are four types of flow: Continous flow, Dedicated Repetitive flow, Mixed-model Repetitive flow, and Intermittent or Batch Flow.

Continous flow usually refers to the production or processing of fluids, wastes, powders, basic metals, and other bulk items. An oil refinery that gradually refines crude oil into various petroleum products is an examples of continous flow.