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Moving from engineer-to-order (ETO) to assembled-to-order (ATO) usually increases which of the following costs per unit?
Suggested Answer: B
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36 comments · newest first
BO
Bok
11 months ago
Definitely not procurement, that should stay stable.
LE
Leigha
11 months ago
Surprised to hear that! I thought ATO would lower some costs.
CE
Cecily
12 months ago
I think manufacturing costs might go up too.
FA
Fallon
12 months ago
Totally agree, inventory management gets trickier!
OD
Odette
12 months ago
ATO usually increases inventory costs.
GA
Galen
1 year ago
I recall something about transportation costs being affected, but I can't remember if they go up or down with ATO.
EL
Elenore
1 year ago
I feel like manufacturing costs could go up too, but I'm leaning towards inventory being the main factor.
HA
Hannah
1 year ago
I'm not entirely sure, but I remember a practice question that mentioned procurement costs could rise with ATO due to needing more parts.
LE
Levi
1 year ago
I think moving to ATO might increase inventory costs since you need to keep more components on hand for assembly.
WI
Winifred
1 year ago
Hmm, this one seems straightforward. I'll carefully read through the options and think about which Object types can have Milestones added to them.
WY
Wynell
1 year ago
Okay, the key here is to improve high-availability and network reconvergence between the LAN-side BGP Networks and the hub Edges in New York. I think modifying the timers is the way to go, but I'll need to double-check the specifics.
MA
Marsha
1 year ago
From what I remember, safety stock can be applied to handle shortages, but I'm wondering if that's a long-term solution.
RU
Rusty
1 year 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!
CA
Casie
1 year 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?
AL
Alonso
1 year ago
Transportation costs might also go up with ATO since you may need to ship more frequently. So A) Transportation could be a factor too.
JO
Joanna
1 year ago
I think C) Manufacturing costs could also increase when moving from ETO to ATO. More standardized processes may be needed.
HA
Harley
1 year ago
I agree, B) Inventory is the correct answer. Holding more inventory can definitely increase costs.
RO
Rosenda
1 year 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!
EU
Eura
1 year ago
But maybe the decrease in Inventory costs would offset the increase in Procurement costs.
MA
Mariann
1 year ago
Yeah, coordinating all those suppliers can be a headache for sure.
SC
Scarlet
1 year ago
I think you're right, D) Procurement sounds like it would increase with the switch to ATO.
KI
King
1 year ago
Hmm, I'm not sure about this one. I'd guess C) Manufacturing, since ATO might require more automation and specialized equipment.
DA
Dan
1 year ago
Maybe it's a combination of all of them, depending on the specific situation.
EL
Elvis
1 year ago
That's a good point, but I still believe C) Manufacturing would see the biggest increase in costs.
LI
Lilli
1 year ago
I agree, but I also think D) Procurement could increase due to the need for more standardized parts.
FR
Frank
1 year ago
I think it might be B) Inventory, since ATO would require holding more finished goods.
CH
Christiane
1 year ago
Maybe it's a combination of all of them, depending on the specific situation.
JO
Joanna
1 year ago
That's a good point, but I still believe C) Manufacturing would see the biggest increase in costs.
SY
Sylvia
1 year ago
I agree, but I also think D) Procurement could increase due to the need for more standardized parts.
LE
Leanora
1 year ago
I think it might be B) Inventory, since ATO would require holding more finished goods.
RO
Rosendo
1 year ago
Yeah, that's a good point. ATO would probably require more specialized equipment.
AH
Ahmed
1 year ago
I think it might be C) Manufacturing too, makes sense with the automation.
MI
Mitsue
1 year 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.
PA
Paola
2 years ago
But wouldn't transportation costs also increase with ATO due to more frequent shipments?
KA
Kanisha
2 years ago
I agree with Dan, because with ATO, we need to hold more finished goods in stock.
DA
Dan
2 years ago
I think it's B) Inventory.