Describe the difference between the make-to-order and make-to-stock production processes
What will be an ideal response?
Answer: We can classify goods production into broad groupings by asking whether its operations process has a make-to-order or a make-to-stock emphasis. We can classify services according to the extent of customer contact required. Clothing, such as evening gowns, is available either off-the-shelf in department stores or custom-made at a designer or tailor shop. The designer or tailor's make-to-order operations respond to one-of-a-kind gown requirements including unique patterns, materials, sizes, and shapes, depending on customers' characteristics. Make-to-stock operations, in contrast, produce standard gowns in large quantities to be stocked on store shelves or in displays for mass consumption. The production processes are quite different for the two settings, including procedures for designing gowns; planning for materials purchases; equipment and work methods for cutting, sewing, and assembling gowns; and employee skills for production.
You might also like to view...
A fixed variable model offered by the model management module of a decision support system does not change.
Answer the following statement true (T) or false (F)
Which of the following items would be deducted from net income to determine net cash provided by operating activities using the direct method?
A) loss on sale of plant assets and amortization of bond payable discount B) amortization of bond payable premium and gain on sale of equipment C) amortization expense and gain on sale of equipment D) None of these choices would be deducted from net income
A stock that a corporation has once issued and then reacquired is called ________ stock
a. treasury b. common c. outstanding d. preferred
Which of the following are present value methods of analyzing capital investment proposals?
A) Internal rate of return and average rate of return B) Average rate of return and net present value C) Net present value and internal rate of return D) Net present value and payback