CPIM Practice Exam

Which manufacturing environment typically has the longest delivery lead time?

1. Make-to-order

2. Assemble-to-order

3. Package-to-order

4. Make-to-stock

The correct answer is: Make-to-order

In a make-to-order manufacturing environment, products are manufactured only after a customer places an order. This approach contrasts with other environments where products may be produced in anticipation of demand. Because make-to-order systems rely on customer specifications, they require the time needed to design, produce, and deliver a product from scratch. This often involves longer lead times due to the initial processing of the order, sourcing raw materials, and the entire production cycle starting only after the order is received. On the other hand, assemble-to-order, package-to-order, and make-to-stock environments typically benefit from shorter lead times. In assemble-to-order, components are manufactured ahead of time and are only assembled once an order is received, which can significantly reduce delivery time. Package-to-order also allows for quick fulfillment since the product is already made and only needs to be packaged. Lastly, in a make-to-stock environment, items are produced in advance based on forecasted demand, leading to immediate availability for delivery, thus minimizing lead times. Therefore, the nature of the make-to-order approach inherently leads to longer delivery lead times compared to the others.