Which of the Following Situations Is Characteristic of a Make-To-Stock

question 155

Multiple Choice

Which of the following situations is characteristic of a make-to-stock environment?

• A) Work in process (WIP) represents the largest cost of inventory.
• B) The impact of technology on the production process will be large.
• C) The master schedule is stated at the finished product level.
• D) Customer involvement is typically very high.

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Definitions:

Supply

Supply is the total amount of a specific good or service available to consumers, and it increases or decreases based on the good's price.

Demand

The desire for a particular good or service coupled with the ability and willingness to pay for it.

Substitutes

Goods or services that can be used in place of each other where the presence of one reduces the demand for the other.

Supply

The total amount of a product or service that is available to consumers in the market at current prices.