Final answer:
Make-to-order production typically operates on a short planning horizon, which can pose challenges for rapid scaling compared to strategies based on long-term planning.
Step-by-step explanation:
Make-to-order production is most likely based on a short planning horizon. This business model involves producing goods only after receiving an order, allowing for customized products and reduced inventory costs.
However, compared to long-term planning, the make-to-order approach can present challenges in scaling production quickly, as capacity adjustments, such as building a new factory or hiring additional workers, are more feasible with a long-term perspective according to the supply side of markets.
Long-term planning in business entails strategic decisions for scaling up, considering variable costs, and evaluating alternative production technologies over a period that typically spans several years.
Make-to-order (MTO) production is a manufacturing strategy where products are only manufactured once a customer places an order. This method contrasts with "make-to-stock" (MTS) production, where goods are produced based on anticipated demand and stocked in inventory.