Final answer:
Make-to-stock production is generally based on a medium to long planning horizon, as it requires forecasting future demand and preparing inventory ahead of time, which aligns with the ability of companies to better expand production capabilities over a long-term duration due to fewer constraints and thorough planning.
Step-by-step explanation:
Make-to-stock production is a manufacturing strategy where products are made in anticipation of future demand and based on forecasts. It is most likely based on a medium to long planning horizon. This type of production benefits from long-term planning because it involves predicting customer demand well in advance, which takes into account the time necessary to produce goods, manage inventory levels, and ensure there is sufficient supply to meet expected orders.
In the context of supply side considerations, it is easier for producers to expand production over a long-term horizon of several years than in the short run of a few months. In the short run, significant constraints such as the cost and difficulty of building new facilities, hiring workers, and expanding distribution networks can impede rapid expansion. Conversely, long-term expansion allows time for strategic planning, construction of infrastructure, staffing, and establishing new stores, which are essential components for make-to-stock production.