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Why do lean manufacturers favor pull or “make to order” manufacturing?
Financial & Managerial Accounting
Solutions
Financial & Managerial Accounting
Why do lean manufacturers favor pull or “make to order” manufacturing?
Lean Manufacturing: Lean manufacturing aims at reducing the cost and minimizing the waste involved in the production, in order to optimize the value for the product or the service.
To Explain: The reasons to prefer make to order.
Explanation of Solution
Make to Order: Make to order is a strategy where the goods are produced after the order for the goods are placed. It is also known as Pull manufacturing as the demand for the product pulls the supply or the creation of the product.
The reasons to prefer this strategy are as follows:
- Make to order assists in making the required quantity of products, hence reduce the socking cost...
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