Final answer:
The term for producing finished goods after receiving a customer's order is Make-to-Order. It focuses on customizing products to customer specifications and contrasts with Make-to-Stock, where goods are produced beforehand.
Step-by-step explanation:
The term for starting the production of finished goods only after a customer's order is received is Make-to-Order. In this business model, companies wait for orders before manufacturing begins, ensuring that products are customized to the specific needs of the customer.
This approach stands in contrast to Make-to-Stock, where products are manufactured in anticipation of future demand and kept in inventory until an order is placed. Make-to-Order systems require a more flexible manufacturing process to accommodate the customization and typically result in longer wait times for the customer but offer the benefit of personalized goods.