Make-to-stock (MTS)and make-to-order (MTO)choices each offer relative advantages and disadvantages.Which of the following statements is true?
A) MTO typically allows faster customer order response times.
B) MTS typically results in higher production system costs.
C) MTO typically allows for higher flexibility in product design offeringsD. MTO builds to replenish system inventories, rather than to customer orders.

Question

Quizplus · Accepted Answer

MTO is more flexible and does build to customer orders, but is usually slower and more costly.

Make-To-Stock (MTS)and Make-To-Order (MTO)choices Each Offer Relative Advantages and Disadvantages