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APICS Exam CSCP Topic 2 Question 66 Discussion

Actual exam question for APICS's CSCP exam
Question #: 66
Topic #: 2
[All CSCP Questions]

Moving from engineer-to-order (ETO) to assembled-to-order (ATO) usually increases which of the following costs per unit?

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Suggested Answer: B

by Roxane at Mar 02, 2023, 07:54 AM

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Rusty
22 days ago
I'll have to go with B) Inventory. Holding more parts in stock is the name of the game in ATO. Just hope they don't expire before they get used!
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Casie
25 days ago
I'm going with B) Inventory. Increased holding costs are the price you pay for the flexibility of ATO. Gotta spend money to make money, right?
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Rosenda
27 days ago
Ha! I bet the answer is D) Procurement. Now the company has to coordinate all those suppliers to get the right parts on time. Good luck with that!
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Scarlet
20 days ago
I think you're right, D) Procurement sounds like it would increase with the switch to ATO.
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King
2 months ago
Hmm, I'm not sure about this one. I'd guess C) Manufacturing, since ATO might require more automation and specialized equipment.
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Rosendo
27 days ago
Yeah, that's a good point. ATO would probably require more specialized equipment.
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Ahmed
1 months ago
I think it might be C) Manufacturing too, makes sense with the automation.
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Mitsue
2 months ago
I think the answer is B) Inventory. Transitioning from ETO to ATO typically means holding more components in stock, which increases inventory costs per unit.
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Paola
2 months ago
But wouldn't transportation costs also increase with ATO due to more frequent shipments?
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Kanisha
2 months ago
I agree with Dan, because with ATO, we need to hold more finished goods in stock.
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Dan
2 months ago
I think it's B) Inventory.
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