Multiple choice technology packaged enterprise solutions

Item is built on the customer product specifications such as large commercial aircrafts. Such product can not be produces according to existing specifications of the company because some engineering skill is required to incorporate customer specifications in to the design of the final product

  1. Make to stock

  2. Make to Order

  3. Assemble to Order

  4. Engineer to Order
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Engineer to Order (ETO) is the correct strategy for products built to customer specifications that require engineering work to incorporate those requirements. Make to Stock produces to forecast, Make to Order assembles to order from standard components, and Assemble to Order configures from standard modules without engineering.

AI explanation

Engineer to Order is used when a product must be redesigned or engineered around unique customer specifications before it can be manufactured, which is exactly the case for large, customized items like commercial aircraft. Make to Order and Assemble to Order assume the engineering/design and bill of material are already fixed and only final assembly or scheduling varies, while Make to Stock builds against forecast with no customer-specific input at all.

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