ENTREPRENEURIAL OPERATIONS
SUPPLY CHAIN MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Make a product when a customer places an order
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Make and stock products in anticipation of customer demand
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Either A or B
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None of the above
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Detailed explanation-1: -What is Make To Order (MTO)? Make to Order (MTO) is a production technique in which producers start manufacturing a product only after the customer places an order for it. In such a case, commodities are produced in a customized manner according to the specifications of the customer.
Detailed explanation-2: -Make to order is a production strategy businesses use when they choose to manufacture products only after a customer orders them. For example, a business that sells handcrafted furniture may wait until a customer orders a new coffee table to design and produce it.
Detailed explanation-3: -Make-to-order, or MTO, is a manufacturing strategy in which goods are produced from scratch once an order is received. It is a “pull” type supply chain management system, meaning that production is always triggered by actual demand for goods in the form of customer orders.