Question

A company makes necklaces with attached letters. Department A manufactures the necklace chains and letters ahead of demand. Department B assembles the necklaces for specific names when orders are received. Departments A and B are, respectively. a) make-to-stock, make-to-stock. b) make-to-stock, assemble-to-order. c) make-to-order, make-to-stock. d) make-to-order, assemble-to-order.

Answer 1

Answer:

Option (b) make-to-stock, assemble-to-order.

Explanation:

The reason is that the department A manufactures the product not B which means the make to stock is the primary function of Department A only. Once the necklaces are ready the Department B is ordered by the Department A to print names which is order dependent task and not associated with manufacturing (is associated with assembling). Hence the is the primary function of Department B is Assemble-to-order.