In the make-to-stock process, raw materials, subcomponents, and accessories are procured based on forecasts, but actual manufacturing does not start until sales orders are received. Group of answer choices false true

Question

Atticus Hughes

Business

18 July, 05:01

In the make-to-stock process, raw materials, subcomponents, and accessories are procured based on forecasts, but actual manufacturing does not start until sales orders are received. Group of answer choices false true

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Answers (1)

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Kyan Lindsey · Answer 1

False

Explanation:

The reason is that make to stock is part of a push system because production are made prior to order and are stocked because the producer expects based on past data that it is capable of selling a particular number of stock. So the company produces and stocks the inventory. This means that saying production doesn't starts before the sales order receipt is totally incorrect.