Make-to-order companies use inventory whereas make-to-stock companies use backorders to shift demand. True or False

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Make-to-order companies use inventory whereas make-to-stock companies use backorders to shift demand. True or False

Make-to-order companies use inventory whereas make-to-stock companies use backorders to shift demand.

True or False

business Operations-Management

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Answer 1

Answer #1

True

Make-to-order companies use inventory, Whereas make-to-stock companies use backorders to shift demand.

Make to order is a production process where the manufacturer commences operations upon receipt of an order from a customer. This production strategy also helps to minimize wastage associated with excess inventory.

Make-to-stock involves manufacturing goods based on anticipated consumer demand.

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Answer 2

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Make-to-order companies use inventory whereas make-to-stock companies use backorders to shift demand. True or False

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