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?
Correct Answer: C
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. References: * 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.
Question 222
Which of the following factors is a measure of supply chain reliability?
Correct Answer: D
Question 223
Which of the following actions by a manufacturer most likely would improve service levels throughout the supply chain?
Correct Answer: A
Question 224
A master production schedule serves a company best by functioning as a:
