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

Question

Quizplus · Accepted Answer

Make-to-stock refers to production of goods in anticipation of future customer orders. The goods are produced and stocked in inventory, ready for immediate delivery when customers place orders. Assemble-to-order refers to production of goods only after receiving customer orders, using pre-manufactured components. Make-to-order involves production of goods based on specific customer orders, with customization to meet individual customer needs. Just-in-time involves production of goods at the exact time when they are needed for delivery, in order to minimize inventory costs.

When Firms Produce Goods in Anticipation of Future Customer Orders