APICS Certified Supply Chain Professional (CSCP) — Question 47

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?

Answer options

• A. Engineer-to-order (ETO)
• B. Make-to-order (MTO)
• C. Assemble-to-order (ATO)
• D. Make-to-stock (MTS)

Correct answer: C

Explanation

Assemble-to-order (ATO) is ideal for unpredictable demand because it allows for components to be stocked and then assembled quickly based on specific customer orders. Engineer-to-order (ETO) and Make-to-order (MTO) are less effective in this scenario as they require longer lead times for production, while Make-to-stock (MTS) may lead to excess inventory that does not align with the unpredictable demand.