What does a "make-to-order" (MTO) production strategy involve?

A "make-to-order" (MTO) production strategy is centered around manufacturing items only after a customer has placed an order. This approach allows organizations to tailor products to specific customer requirements, ensuring that they only produce what is actually needed and desired by the customer. It is particularly beneficial for companies that produce customized products or have fluctuating demand, as it helps minimize excess inventory and reduces waste.

By focusing on individual customer orders, businesses can enhance customer satisfaction by delivering products that align closely with what consumers want, rather than pushing standard products that may not fit every demand. This method often leads to more flexible production scheduling and efficient resource utilization, as the production process begins only when there is guaranteed demand.

The other options represent different production strategies or approaches that do not align with the fundamental principle of MTO, which is based on waiting for specific customer orders before initiating production.