Question

Which supply chain strategy does Jeremy employ when he creates a custom piece only after receiving a specific request from a customer?

a) Mass Production
b) Make-to-Stock
c) Engineer-to-Order
d) Assemble-to-Order

Answer 1

Jeremy uses an Engineer-to-Order strategy, where production starts only after receiving a customer's order, allowing for high customization of products.

Step-by-step explanation:

When Jeremy creates a custom piece only after receiving a specific request from a customer, he employs the Engineer-to-Order (ETO) supply chain strategy. This approach is distinct from mass production, make-to-stock, and assemble-to-order strategies as it involves designing and producing products tailored to individual customer specifications. Unlike make-to-stock, where goods are produced in large quantities and kept in inventory ahead of demand, or assemble-to-order, where components are produced in advance but assembled only after an order is placed, the ETO strategy starts the production process only after an order has been received. This allows for high customization and is often used for complex and highly specialized products.