The tangibility of products refers to if they are tangible, intangible, or mixed. It is important to view operations from the customer’s perspective. The level of customer involvement refers to the amount of input from customers. Make-to-stock operations produce products with a common design and price in anticipation of demand. Therefore, there is a low level of customer involvement. Most goods that you see in retail stores are from make-to-stock operations.
Assemble-to-order operations produce a standard product with some customized features. Some services and goods, such as those built with optional features, can be produced only after the receipt of an order. Make-to-order operations are carried out only after an order has been received from a specific customer. Here, there is a high level of customer involvement. Operations flexibility refers to the amount of variety in the products an operation produces, which determines whether the products are produced continuously, repetitively, in batches, or individually. The trend is toward more flexible manufacturing to allow customization.