Manufacturing starts after a customer's order is received describes which system?

Manufacturing starts after a customer's order is received describes which system?

• A. Make to Stock
• B. Make to Order
• C. Assemble to Order
• D. Engineer to Order

Answer: (B)

Producing only after the customer places an order means you start manufacturing in response to actual demand, not a forecast. This approach is Make to Order. It keeps finished goods inventory low because nothing is built until there’s a specific order, and it allows maximum customization since each order can specify different features or configurations. Lead times tend to be longer because everything from planning to procurement and production happens after the order is received. As context, Make to Stock would build products before orders based on forecast; Assemble to Order uses pre-made subassemblies but still performs final assembly after receiving the order; Engineer to Order involves designing a new product for a specific customer, with substantial engineering work before any production. The given description matches Make to Order most closely.

Producing only after the customer places an order means you start manufacturing in response to actual demand, not a forecast. This approach is Make to Order. It keeps finished goods inventory low because nothing is built until there’s a specific order, and it allows maximum customization since each order can specify different features or configurations. Lead times tend to be longer because everything from planning to procurement and production happens after the order is received.

As context, Make to Stock would build products before orders based on forecast; Assemble to Order uses pre-made subassemblies but still performs final assembly after receiving the order; Engineer to Order involves designing a new product for a specific customer, with substantial engineering work before any production. The given description matches Make to Order most closely.