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APICS CSCP Exam - Topic 2 Question 120 Discussion

Actual exam question for APICS's CSCP exam
Question #: 120
Topic #: 2
[All CSCP Questions]

Which of the following manufacturing strategies would run the greatest risk of increasing obsolete inventory costs?

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Suggested Answer: A

Make-to-stock (MTS) is a manufacturing strategy where products are produced based on anticipated customer demand and then held in inventory until sold. The primary risk associated with MTS is the possibility of overestimating demand, which can lead to excess inventory. If the forecasted demand does not materialize, the unsold inventory may become obsolete, leading to increased costs associated with storage, depreciation, and potential disposal. In contrast, the other strategies---assemble-to-order (ATO), make-to-order (MTO), and engineer-to-order (ETO)---are more demand-driven, producing goods in response to actual customer orders, thus reducing the risk of holding obsolete inventory. Reference:

Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.

Stevenson, W. J. (2021). Operations Management. McGraw-Hill Education.


by Izetta at Jan 05, 2026, 05:16 AM

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Florinda
3 days ago
B) Assemble-to-order, because I like my inventory like I like my relationships - complicated.
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Dino
8 days ago
C) Make-to-order, because waiting is the new black.
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Jennifer
13 days ago
D) Engineer-to-order, because who needs products that actually work?
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Stephaine
18 days ago
A) Make-to-stock is the way to go, who needs fresh inventory anyway?
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Kina
24 days ago
I feel like D) Engineer-to-order might have lower risks since products are made based on specific customer requirements, but I could be wrong.
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Georgene
29 days ago
I practiced a similar question where A) Make-to-stock was also highlighted as a risk for obsolescence, so I’m leaning towards that answer.
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Pete
1 month ago
I'm not entirely sure, but I remember something about B) Assemble-to-order being less risky for inventory costs since it waits for customer orders.
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Suzan
1 month ago
I think it's A) Make-to-stock because it involves producing items in advance, which could lead to excess inventory if demand changes.
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Serina
1 month ago
I'm pretty confident the answer is make-to-stock. With that strategy, you're producing before you have confirmed orders, so the risk of obsolete inventory is highest.
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Cassie
2 months ago
Okay, let me see. Make-to-stock seems like it could lead to a lot of excess inventory that might become obsolete. I'm leaning towards that as the riskiest option.
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Kristal
2 months ago
Ugh, I'm not sure about this one. I'd have to think through the different strategies and how they impact inventory levels. Maybe make-to-order is the safest?
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Darci
2 months ago
Hmm, this one's tricky. I think make-to-stock might be the riskiest for obsolete inventory since you're producing before you have orders.
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