Which of the following statements concerning make-to-order (MTO)is correct?
A) MTO eliminates the need for materials inventory.
B) MTO can include production of standardized products.
C) MTO orders are specified by the producer and stocked accordingly.
D) MTO performance is best measured by cost per item.

Question

Quizplus · Accepted Answer

Although MTO allows more flexibility for customized products, much MTO business is for routine and standard products - they are just not produced until the order is received.

Which of the Following Statements Concerning Make-To-Order (MTO)is Correct