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The make-to-stock manufacturing (MTS) strategy can be described as producing products to put into stock based on a demand forecast.
In this strategy, companies do not maintain productive stability over a period of time, but adjust their manufacturing strategy according to times when demand can increase or decrease.
Some advantages of the make-to-stock strategy are:
- Economy of scale.
- Waste reduction.
- Efficiency in the use of resources.
- Increased response time.
So this is an effective manufacturing strategy for companies that can accurately forecast their demand.
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Answer:
The correct answer is is of less strategic importance than identifying opportunities for outsourcing.
Explanation:
Outsourcing consists in the delegation of functions from one company to another that specializes in this task. Among its greatest benefits are cost reduction and access to new technologies, among others, however, if the service provider does not have sufficient capacity to perform this function, it may damage the image of the contracting company. This tool can be used tactically or strategically and can be adapted to the requirements of the company requesting the service, it is implemented at different levels and in areas of the organization that are not essential to gain competitiveness.
