Question

When the order acceptance occurs during the early portions of the production lead time, how would you describe the current manufacturing environment? a. Make to stock (MTS) b. Assemble to order (ATO) c. Make to order (MTO) d. Assemble to stock (ATS)

Answer 1

The current manufacturing environment would be described as:

c. Make to Order (MTO).

Step-by-step explanation:

The 'make to order' strategy means that the company accepts orders during the production lead time and produces products based on the customer's specifications. The goods will not be stocked after production, instead they will be shipped to the customer who requested for them immediately after production. It is unlike 'make to stock' production strategy, where orders result from production planning based on sales estimates.