CLEP Principles of Management Exam Prep

Answer: A - The company is using a make-to-stock manufacturing strategy where large volumes of product are created and then stored until sold.

Key Takeaway: When a company chooses a make-to-stock manufacturing strategy, they produce large quantities of the product at one time and then store them. This strategy produces large inventory quantities which must then be stores, sometimes for long periods of time. If demand for the product is stable, this is a successful manufacturing strategy since it provides a faster customer response time when orders are actually placed.