Consider a Business That Can Be Run Using a Make-To-Stock

question 58

Multiple Choice

Consider a business that can be run using a make-to-stock or make-to-order process. Further suppose that your demand is 10,000 per month and is spread out during the month. Capacity of both processes is 15,000 per month. Based only on this information, what would be the best choice?

• A) Choose make-to-stock process.
• B) Choose make-to-order process.
• C) Install an assembly line.
• D) Raise prices in order to increase demand.
• E) None of these choices are correct.

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