Make-To-Stock (MTS)and Make-To-Order (MTO)choices Each Offer Relative Advantages and Disadvantages

question 50

Multiple Choice

Make-to-stock (MTS) and make-to-order (MTO) choices each offer relative advantages and disadvantages.Which of the following statements is true?

• A) MTO typically allows faster customer order response times.
• B) MTS typically results in higher production system costs.
• C) MTO typically allows for higher flexibility in product design offeringsD. MTO builds to replenish system inventories, rather than to customer orders.

---

Definitions:

Solver

A software tool or function that finds the optimal solution to a mathematical problem or equation by varying multiple variables within constraints.

Personnel Limitation

Constraints or restrictions related to the number or capabilities of staff available for a project or operation.

Net Present Value

A calculation used to evaluate the profitability of an investment, subtracting the present values of cash outflows from the present values of cash inflows.

Binary Variable

A variable that takes on one of exactly two possible values, typically represented or coded as 0 and 1.