The concept of an on-demand enterprise is based on the premise that manufacturing or service fulfillment operations will start only after an order is received.This approach is referred to as__________.
A)produce-to-stock
B)build-to-order
C)JIT
D)safety stock

Question

Quizplus · Accepted Answer

The concept of an on-demand enterprise is based on the build-to-order approach, where products or services are manufactured or fulfilled only after an order is received from the customer. This allows companies to better align with customer demand and avoid overproduction and excess inventory. A produce-to-stock approach, on the other hand, involves producing goods in anticipation of demand, relying on forecasting and inventory management, and may result in production of goods that are not immediately needed. JIT (Just-In-Time) is a manufacturing philosophy that emphasizes continuous flow and minimal inventory, but it may or may not involve a build-to-order approach, depending on the specifics of the production process. Safety stock is additional inventory held in case of unexpected demand or supply chain disruptions, and is not directly related to the build-to-order approach.

The Concept of an On-Demand Enterprise Is Based on the Premise