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Costco's Supply Chain

378 Words2 Pages
Costco’s supply chain revolves around a Build-to-Stock type to satisfy customer needs. Build-to Stock refers to when a company orders the inventory ahead of time based on previous sales, or the historical demand. This type of supply chain is beneficial to companies like Costco since they do not have any offices where they can store any items. Due to this reason Costco orders their supplies ahead of times and just stock the products on top of each other in higher shelfs. None of the items that Costco produces are customized or custom made. Everything they make is made in one order, but it benefits them because Costco provides a variety of items to satisfy the customers. One thing that makes Costco Unique is that they found ways to eliminate
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