Firms will generally make-to-order when:
A) products are produced to customer specifications
B) there are many product options
C) product is expensive to make and store
D) all of the above
E) none of the above

Question

Quizplus · Accepted Answer

All the options A, B, and C are valid reasons for firms to make-to-order. When products are produced to customer specifications, it allows for a high degree of customization and personalization, and firms can charge a premium for such products. In cases where there are many product options, making-to-order enables firms to offer a wide range of choices without having to carry excess inventory or tie up capital in excessive stock. Finally, making-to-order is often a preferred approach when the product is expensive to make and store, since it enables firms to reduce waste and optimize their resources.

Firms Will Generally Make-To-Order When