Certified Production & Operations Manager Exam Practice 2025 – Complete Study Guide

The correct answer is focused on a "make-to-order" production strategy, which directly aligns with customer demand. This strategy involves producing goods only after receiving a customer's order, rather than producing items in anticipation of demand. This approach ensures that products are customized to meet the specific needs and preferences of individual customers, leading to increased customer satisfaction and reduced waste associated with unsold inventory.

In contrast, a "make-to-stock" strategy produces goods in advance of demand based on forecasts, which may not always align with actual consumer needs. The "push strategy," on the other hand, involves pushing products through the supply chain to consumers based on estimated demand, rather than waiting for specific orders. "Batch production" refers to producing goods in groups or batches, which might not be as responsive to individual customer requests as the make-to-order strategy.

By choosing to produce based on actual customer orders, the make-to-order strategy effectively addresses the variability in demand and tailors production to align closely with what customers want at the time they place their orders.