BMGT375 Mid Term Exam – Updated Q&A –
Guaranteed High Score- Verified by Lecturers –
100% Correct
What are examples of MAKE TO STOCK? - ✔✔Off-the-shelf retail clothing, soft drinks, airline flights,
hamburger patty at mcdonald's .
What is the overall point of make to stock with customers? - ✔✔GAIN speed of delivery, but LOSE
ABILITY TO CUSTOMIZE the product.
What is the ASSEMBLE-TO-ORDER strategy? - ✔✔Known as built-to-order, where the product is partially
completed and kept in a generic form, then FINISHED when an order is RECEIVED.
What is the inventory that the company holds in assemble to order? - ✔✔STANDARD COMPONENTS
that can be combined to customer specfications.
What is delivery time and customer involvement in ASSEMBLE TO ORDER? - ✔✔LONGER, but customers
can make customizations.
What is the preferred strategy of assemble to order? - ✔✔Strategy when there are many VARIATIONS of
the end product and the company wants to achieve LOW FINISHED-goods inventory and SHORTER
customer lead times THAN make-to-order can deliver.
What are examples of ASSEMBLE TO ORDER? - ✔✔Computer systems, pre-fabricated furniture with
choices of fabric colors, vacation packages with standard options.
What is the MAKE TO ORDER strategy? - ✔✔For CUSTOMIZED products or products with INFREQUENT
DEMAND.
Why is make to order used? - ✔✔To PRODUCE products to customer specifications after an order has
been RECEIVED.
,How is the delivery system in make to order and what is the product volume? - ✔✔LONGEST and
volume is LOW.
What are examples of make to order? - ✔✔-Custom-made clothing
-Custom-built homes
-Customized professional services
When do companies of make to order produce a FINAL PRODUCT? - ✔✔When an order has been
RECEIVED.
What does this do to inventory levels? - ✔✔KEEPS IT LOW while allowing a WIDE RANGE OF PRODUCT
OPTIONS.
What is not possible when switching strategies? - ✔✔Make to order to make to stock, better to occupy
a position of middle ground
What can moving from make-to-stock to assemble-to-order do? - ✔✔SERVE TO IMPROVE customer
service while REDUCING INVENTORY.
What can negatively result in make-to-stock strategy inventories? - ✔✔TOO much of one type of
inventory and NOT ENOUGH of another.
What can assemble to stock result to fix the problem of make-to-stock? - ✔✔LOWER AMOUNTS of
inventory. The final assembly can then take place when demand for specific products is known with
greater certainty.
What is the problem of an assemble to order in the automobile industry? - ✔✔that there is potentially a
COUNTLESS number of end product configurations. Trying to satisfy the many different product
variations makes it difficult to maintain a competitive lead time.
, What is one way to ACCOMPLISH this assemble to order problem? - ✔✔Have suppliers fully integrated
into the production process.
What is OPERATIONS STRATEGY and how does it change the process of product making? - ✔✔In the
early stages of product life, demand for a product is uncertain and companies are better off with a
make-to-order strategy as key product attributes are still unknown.
What is a company's DISTRIBUTION STRATEGY? - ✔✔How it plans to get its products and services to
customers.
What is an important decision in distribution strategy? - ✔✔Whether the company is going to sell
DIRECTLY through DISTRIBUTORS or RETAILERS (channel intermediaries) or DIRECTLY to CUSTOMERS,
such as using the Internet or a direct sales force.
Who used the DIRECT-TO-CUSTOMER strategy? - ✔✔Dell
How did Dell change in 2009? - ✔✔Would sell through retailers like Best Buy.
-Response to CHANGING MARKETS
What does SELECTION AND DEVELOPMENT of a distribution strategy require? - ✔✔DOING MARKET
SEGMENTATION
What is market segmentation? - ✔✔ANALYZING the perceived VALUE of each segment, as well as the
competition and profitability of each segment.
What is an example of market segmentation? - ✔✔BOTTLED WATER industry
-Spring water and distilled water
What are the two strategies used to serve customer segments? - ✔✔1.) TRADITIONAL retail distributors
who serve the retail customers
2.) DIRECT to customer (water replenished on-site, home or office)
Guaranteed High Score- Verified by Lecturers –
100% Correct
What are examples of MAKE TO STOCK? - ✔✔Off-the-shelf retail clothing, soft drinks, airline flights,
hamburger patty at mcdonald's .
What is the overall point of make to stock with customers? - ✔✔GAIN speed of delivery, but LOSE
ABILITY TO CUSTOMIZE the product.
What is the ASSEMBLE-TO-ORDER strategy? - ✔✔Known as built-to-order, where the product is partially
completed and kept in a generic form, then FINISHED when an order is RECEIVED.
What is the inventory that the company holds in assemble to order? - ✔✔STANDARD COMPONENTS
that can be combined to customer specfications.
What is delivery time and customer involvement in ASSEMBLE TO ORDER? - ✔✔LONGER, but customers
can make customizations.
What is the preferred strategy of assemble to order? - ✔✔Strategy when there are many VARIATIONS of
the end product and the company wants to achieve LOW FINISHED-goods inventory and SHORTER
customer lead times THAN make-to-order can deliver.
What are examples of ASSEMBLE TO ORDER? - ✔✔Computer systems, pre-fabricated furniture with
choices of fabric colors, vacation packages with standard options.
What is the MAKE TO ORDER strategy? - ✔✔For CUSTOMIZED products or products with INFREQUENT
DEMAND.
Why is make to order used? - ✔✔To PRODUCE products to customer specifications after an order has
been RECEIVED.
,How is the delivery system in make to order and what is the product volume? - ✔✔LONGEST and
volume is LOW.
What are examples of make to order? - ✔✔-Custom-made clothing
-Custom-built homes
-Customized professional services
When do companies of make to order produce a FINAL PRODUCT? - ✔✔When an order has been
RECEIVED.
What does this do to inventory levels? - ✔✔KEEPS IT LOW while allowing a WIDE RANGE OF PRODUCT
OPTIONS.
What is not possible when switching strategies? - ✔✔Make to order to make to stock, better to occupy
a position of middle ground
What can moving from make-to-stock to assemble-to-order do? - ✔✔SERVE TO IMPROVE customer
service while REDUCING INVENTORY.
What can negatively result in make-to-stock strategy inventories? - ✔✔TOO much of one type of
inventory and NOT ENOUGH of another.
What can assemble to stock result to fix the problem of make-to-stock? - ✔✔LOWER AMOUNTS of
inventory. The final assembly can then take place when demand for specific products is known with
greater certainty.
What is the problem of an assemble to order in the automobile industry? - ✔✔that there is potentially a
COUNTLESS number of end product configurations. Trying to satisfy the many different product
variations makes it difficult to maintain a competitive lead time.
, What is one way to ACCOMPLISH this assemble to order problem? - ✔✔Have suppliers fully integrated
into the production process.
What is OPERATIONS STRATEGY and how does it change the process of product making? - ✔✔In the
early stages of product life, demand for a product is uncertain and companies are better off with a
make-to-order strategy as key product attributes are still unknown.
What is a company's DISTRIBUTION STRATEGY? - ✔✔How it plans to get its products and services to
customers.
What is an important decision in distribution strategy? - ✔✔Whether the company is going to sell
DIRECTLY through DISTRIBUTORS or RETAILERS (channel intermediaries) or DIRECTLY to CUSTOMERS,
such as using the Internet or a direct sales force.
Who used the DIRECT-TO-CUSTOMER strategy? - ✔✔Dell
How did Dell change in 2009? - ✔✔Would sell through retailers like Best Buy.
-Response to CHANGING MARKETS
What does SELECTION AND DEVELOPMENT of a distribution strategy require? - ✔✔DOING MARKET
SEGMENTATION
What is market segmentation? - ✔✔ANALYZING the perceived VALUE of each segment, as well as the
competition and profitability of each segment.
What is an example of market segmentation? - ✔✔BOTTLED WATER industry
-Spring water and distilled water
What are the two strategies used to serve customer segments? - ✔✔1.) TRADITIONAL retail distributors
who serve the retail customers
2.) DIRECT to customer (water replenished on-site, home or office)
