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Consider two firms that provide the same product to customers. Company A uses a make-to-order (MTO) process, while Company B uses a make-to-stock...
Consider two firms that provide the same product to customers. Company A uses a make-to-order (MTO) process, while Company B uses a make-to-stock (MTS) process. Which of the following statements about the way each firm meets customer demand is not true?
A.Company A (MTO)will have a longer delivery lead time than will Company B (MTS)in most cases.
B.Company A (MTO)will be better able to provide a customized product than will Company B (MTS).
C.While making the product, Company A (MTO)will have a greater need to keep track of individual customer orders and requirements than will Company B (MTS).
D.When determining production schedules, Company A (MTO)will rely more heavily on forecasts of customer demand than will Company B (MTS).
E.Both Company A and Company B may choose to sell only standard products to their customers.
