Which of the following manufacturing strategies would run the greatest risk of increasing obsolete inventory costs?

Question

Quizplus · Accepted Answer

Make-to-stock strategy produces large batches of standardized products in anticipation of customer demand, which increases the risk of having excess or obsolete inventory if demand does not match the forecast. As a result, it can lead to higher inventory holding costs, lost sales due to lack of customization, and higher discounts to get rid of obsolete items. Assemble-to-order, make-to-order, and engineer-to-order strategies, on the other hand, are more customer-driven and aim to reduce inventory costs by producing items only as needed or according to customer specifications.

Which of the Following Manufacturing Strategies Would Run the Greatest