Companies who want to carry near-zero inventory should build for order, not for stock.

Question

Quizplus · Accepted Answer

Building for order means manufacturing products only when there is a customer order. This helps companies avoid holding excess inventory and reduces the risk of stockouts, which can negatively impact customer satisfaction and revenue. Therefore, for companies who want to carry near-zero inventory, building for order is the best strategy.

Companies Who Want to Carry Near-Zero Inventory Should Build for Order