What is a key characteristic of a make-to-order production strategy?

A key characteristic of a make-to-order production strategy is that manufacturing occurs only after a confirmed order is received. This approach allows companies to tailor their products to the specific needs and preferences of individual customers, which can lead to higher customer satisfaction. In make-to-order systems, resources and production processes are allocated only when demand is confirmed, reducing waste and the risks associated with holding large inventories. This strategy contrasts sharply with production methods that focus on making goods in advance or maintaining large stockpiles for immediate sale, which can result in excess inventory and potential obsolescence. By producing only what has been ordered, companies can operate more efficiently and can also offer a wider variety of options to meet diverse customer demands.