Question & Answer: Which of the following is an operational advantage of make-to-order relative to make-to-stock? Make-…

Which of the following is an operational advantage of make-to-order relative to make-to-stock? Make-to-order provides faster delivery to customers than make-to-stock. Make-to-order can always have higher utilization of resources than make-to-stock. Make-to-order allows a firm to focus on producing a more limited variety of products. Make-to-order is less likely to have leftover inventory that needs to be salvaged.

Expert Answer

Ans. b. Make to order can always have higher utilisation of resources than make to stock. It relieves the problem of excessive inventory and there are almost no stock obsolesence.

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