APICS Certified Supply Chain Professional (CSCP) — Question 139

A company is considering changing its manufacturing strategy from engineer-to-order (ETO) to make-to-order (MTO). Which of the following risks should the company be careful to consider?

Answer options

• A. Decreasing manufacturing efficiency
• B. Increasing work in process (WIP) inventory
• C. Increasing raw material costs
• D. Decreasing customer satisfaction

Correct answer: D

Explanation

The correct answer is D because transitioning to make-to-order can lead to longer lead times, potentially causing dissatisfaction among customers who expect timely delivery. Options A, B, and C are relevant risks but do not directly impact customer satisfaction as significantly as option D does.