The essential issue in satisfying customers in the make-to-stock environment is to balance the level of finished inventory against the level of service to the customer.

Question

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In a make-to-stock environment, the goal is to maintain enough finished inventory to meet customer demand without having excess inventory that ties up resources and increases costs. However, it is also important to ensure high levels of customer service, such as fast delivery times, accurate order fulfillment, and responsive customer support. Therefore, the challenge is to find the right balance between inventory levels and customer service, to maximize customer satisfaction while minimizing costs.

The Essential Issue in Satisfying Customers in the Make-To-Stock Environment