Question

Sombre is a toy manufacturer that orders the components required to make toys way before its customers make a purchase. They make modules with those components and later, upon receiving customer requests, make toys using those modules. They do this to make sure they are able to cater to the demands of the customers. It is evident that Sombre has adopted a(n) _____A) assemble-to-stock operationB) make-to-stock operationC) make-to-order operationD) assemble-to-order operation

Answer 1

Answer:

D) assemble-to-stock operation

Explanation:

In the assembly to stock operations, products are assembled from per-manufactured components upon receipt of a customer order. The company makes the components or the sub-assemblies, or they may be ordered from other manufacturers. The components also called modules are stocked waiting to be manufactured into a final product.

The assembly-to-stock operation reduces customer waiting time once an order has been placed. It also allows for customization of products as per the customer's specifications. The assembly to stock is a hybrid between the make-to-order approach where a product is manufactured only when a customer orders, and make-to-stock where products are fully manufactured in advance.