A company is considering changing its manufacturing strategy from engineer-to-order (ETO) to make-to-order (MTO). Which of the following risks should the company be careful to consider?
A company is considering changing its manufacturing strategy from engineer-to-order (ETO) to make-to-order (MTO). Which of the following risks should the company be careful to consider?
When a company changes its manufacturing strategy from engineer-to-order (ETO) to make-to-order (MTO), one key risk to consider is the potential for decreasing customer satisfaction. In an ETO strategy, products are customized to individual requirements, whereas in an MTO strategy, products are built upon receipt of customer orders but may offer less customization. This shift can lead to customers perceiving a decline in the personalized service they previously received, potentially reducing their overall satisfaction.
"Increased work-in-process (WIP) inventory": in an MTO environment, WIP inventory may be lower, as products are not started until an order is received. The correct answer is D in my opinion.
i think it's B
i think it's B