A company is considering changing its manufacturing strategy from engineer-to-order (ETO) to make-to-order (MTO). Which of the following risks should the company be careful to consider?
"Increased work-in-process (WIP) inventory": in an MTO environment, WIP inventory may be lower, as products are not started until an order is received. The correct answer is D in my opinion.
When changing from an engineer-to-order (ETO) to a make-to-order (MTO) manufacturing strategy, the company should be careful to consider the risk of increasing work in process (WIP) inventory (Option B). This shift can lead to higher levels of WIP inventory as products are made to order rather than engineered specifically for each order
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