In an ATO inventory environment,it is often the case that the number of _____ is smaller than the number of _____ products,and master production schedules operate at the components or subassembly levels.
A)finished products;components
B)components;stock
C)components;finished
D)both b and c

Question

Quizplus · Accepted Answer

In an ATO (assemble-to-order) inventory environment, the products are assembled from components or subassemblies according to the customer's specifications. As a result, the number of components in inventory is generally greater than the number of finished products. The master production schedule is therefore planned at the component or subassembly level. Choice C correctly reflects this relationship between components and finished products. Choice A is incorrect because it suggests that the number of finished products is higher than the number of components. Choice B is partially correct, but it does not capture the fact that ATO inventory systems are based on assembling products from components, rather than simply stocking components. Choice D is incorrect because it includes choice B, which is only partially correct.

In an ATO Inventory Environment,it Is Often the Case That