When firms produce goods in anticipation of future customer orders, they are operating in a/an _____ environment.

Question

Quizplus · Accepted Answer

When firms produce goods in anticipation of future customer orders, they are operating in a make-to-stock environment. This is where products are produced in advance and stored in inventory to be sold when an order is placed. Assemble-to-order and make-to-order are both production strategies that involve producing goods only after an order is placed. Just-in-time is a production strategy that involves producing goods as close to the time of delivery as possible to minimize inventory costs.

When Firms Produce Goods in Anticipation of Future Customer Orders