Answer to Question 1
A
Answer to Question 2
In the make-to-stock process, goods are produced based on forecasts and are stocked in a warehouse (i.e., a push-based approach); sales orders are then fulfilled from inventory. In contrast, in the make-to-order process, raw materials, subcomponents, and accessories are procured based on forecasts, but actual manufacturing does not start until sales orders are received (a pull-based approach); in extreme cases, even design and engineering start only when an order is received. For example, mass-produced goods, such as television sets or home appliances, are typically produced under a make-to-stock approach. Here, the organization holds these stocked products, pushing the order out to customers after it is received. Alternatively, highly customizable or very expensive low-volume goods are often produced under a make-to-order approach, as is the case with Dell computers or with commercial aircraft, where the assembly starts only after the customer places his order. Here, the organization waits for an order, allowing it to initiate a pulling sequence to move the order through the production process. The processes associated with making products are comprised of processing sales orders, procuring the inputs to the manufacturing process, scheduling production, production, quality control, packaging, and stocking or shipping the product.
Answer to Question 3
TRUE
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