A company faces highly unpredictable demand for an end item. Which of the following production methods would work best for meeting customer demand within a reasonable lead time?
A company faces highly unpredictable demand for an end item. Which of the following production methods would work best for meeting customer demand within a reasonable lead time?
For a company facing highly unpredictable demand, the Assemble-to-order (ATO) production method works best for meeting customer demand within a reasonable lead time. ATO is a hybrid strategy that incorporates elements of both make-to-stock (MTS) and make-to-order (MTO). It involves assembling final products only after receiving customer orders, which allows for customization and flexibility without the need for keeping large inventories. This method provides a balance between responsiveness and efficiency, making it well-suited for handling unpredictable demand while maintaining reasonable lead times.
Since the demand is highly unpredictable and with in a reasonable lead time
I also agree with “C”!
Why it is not C, since the demand is highly unpredictable