A company makes necklaces with attached letters.Department A manufactures the necklace chains and letters ahead of demand.Department B assembles the necklaces when orders are received.Departments A and B are,respectively:
A)Make-to-stock,make-to-stock
B)Make-to-stock,assemble-to-order
C)Make-to-order,make-to-stock
D)Make-to-order,assemble-to-order

Question

Quizplus · Accepted Answer

Department A manufactures the necklaces ahead of demand, which suggests that they are producing the product before there is an actual order for it. This means that Department A is operating on a make-to-stock basis, producing goods for inventory. 
On the other hand, Department B only assembles the necklaces when orders are received, indicating that they are producing the product to fulfill specific customer orders. Therefore, Department B is operating on an assemble-to-order basis. 
Overall, the company operates by first stocking up on the basic components (chains and letters) and then assembling them into necklaces to fulfill customer orders. This aligns with the make-to-stock, assemble-to-order strategy.

A Company Makes Necklaces with Attached Letters