Which describes Make-to-Stock production?

• A. Make-to-stock produces after demand
• B. Make-to-stock produces for inventory before demand
• C. Make-to-stock is identical to make-to-order
• D. Make-to-stock is only for custom orders

Answer: (B)

In Make-to-Stock, production is driven by forecasted demand and finished goods are kept in inventory before any specific customer order arrives. This setup allows you to fill orders quickly from stock, which is ideal for standard, high-volume items with predictable demand. It contrasts with make-to-order, where production starts only after a customer places an order, and it’s not limited to custom orders.