ExamGecko
Search Search Login
Home Home / APICS / CSCP
Question list
Search
Search

List of questions

Search
Open VPLUS File
Convert VPLUS to PDF

Related questions

A company finds that one of its warehouses is out of capacity to store products. Expanding the physical size of the warehouse is not an option. The most appropriate solution would be to increase the:
The purpose of price differentiation is to:
In a make-or-buy decision, if the product is modular and the company is dependent on knowledge and capacity, outsourcing most likely will be:
A company's annual cost of goods sold is $350 million, and inventory carrying cost is 18%. The company averages four inventory turns. The cost savings resulting from increasing inventory turns from four to six would be:
For an item with high profit impact and low supply risk, what would be a likely procurement strategy to support the overall supply strategy?
Supply chains delivering products or services are most able to respond quickly to changing market requirements when:
Throughout most of the supply chain, safety stock will be de-emphasized as a result of improved:
The primary risk associated with outsourcing innovative components to suppliers is:
The practice of supply chain members acting in close collaboration while retaining independent ownership is known as:
A company considers moving a portion of its production to a distant country to support a major customer. Which of the following actions is most effective in mitigating the risk of financial loss in the event of a global economic downturn?

Question 273 - CSCP discussion

Report
Export

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.
Engineer-to-order (ETO)
Answers
A.
Engineer-to-order (ETO)
B.
Make-to-order (MTO)
Answers
B.
Make-to-order (MTO)
C.
Assemble-to-order (ATO)
Answers
C.
Assemble-to-order (ATO)
D.
Make-to-stock (MTS)
Answers
D.
Make-to-stock (MTS)
Suggested answer: C

Explanation:

For a company facing highly unpredictable demand for an end item, an Assemble-to-Order (ATO) production method is best suited for meeting customer demand within a reasonable lead time. Here's why:

Flexibility: ATO combines the advantages of both make-to-stock (MTS) and make-to-order (MTO). Core components are stocked based on demand forecasts, and final assembly is done upon receiving customer orders, providing flexibility to meet specific customer requirements quickly.

Lead Time Reduction: Since the components are already available, the final assembly process is faster, reducing lead times compared to ETO or MTO.

Customization: ATO allows for customization of end products based on customer specifications without the long lead times associated with starting production from scratch.

Inventory Management: It balances the need for inventory and the ability to respond to unpredictable demand, minimizing the risk of stockouts or excess inventory.

Vollmann, T. E., Berry, W. L., Whybark, D. C., & Jacobs, F. R. (2005). Manufacturing Planning and Control for Supply Chain Management. McGraw-Hill.

Stevenson, W. J. (2020). Operations Management. McGraw-Hill.

Show Answer
asked 16/09/2024
Leandro Franklin Franklin
43 questions
PreviousPreviousNextNext
User
Your answer:
0 comments
Sorted by

Leave a comment first

ExamGecko

Copyright @2023 ExamGecko | All right reserved

Mail us: [email protected]
About us
Contact us
Twitter X
Facebook
Medium
Convert VPLUS to PDF
Open VPLUS files Easily and Quickly
Privacy Policy
Disclaimer
Terms