Which of the following statements is false? A. In a make-to-order environment, the forecasts tend to be for groups of products. B. If the lead time to buy raw materials is long, the forecasts go farther out into the future. C. In a make-to-stock environment, forecasts tend to be more detailed and can get down to specific individual products. D. All of the above statements are true.

Question

Cedric Hayden

Business

5 May, 21:01

Which of the following statements is false? A. In a make-to-order environment, the forecasts tend to be for groups of products. B. If the lead time to buy raw materials is long, the forecasts go farther out into the future. C. In a make-to-stock environment, forecasts tend to be more detailed and can get down to specific individual products. D. All of the above statements are true.

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Answers (1)

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Elisha Sloan · Answer 1

D) All of the above statements are true.

Explanation:

A. In a make-to-order environment, the forecasts tend to be for groups of products.

Make to order products are manufactured following the client's specifications. This type of product are not made one at a time, but are made in batches, e. g. 10,000 units of a certain door model.

B. If the lead time to buy raw materials is long, the forecasts go farther out into the future.

If you know that it takes longer to purchase raw materials or any other type of material, you must forecast the amount of material you will need for longer periods of time.

C. In a make-to-stock environment, forecasts tend to be more detailed and can get down to specific individual products.

Make to stock purchases are done to match your expected sales volumes, so if you estimate your sales of product Y to be 200 units, then you will forecast the purchase of 200 units of that product.