APICS Updated CTSC Exam Questions and Answers by kobi

ETO is an operating model that involves designing and producing customized products or services based on the specific requirements of each customer1.ETO is suitable for customized offerings with infrequent demand, as it allows the organization to create unique and differentiated value propositions for each customer, and to avoid holdingexcess inventory of products that may not sell well2.ETO also enables the organization to leverage its engineering and innovation capabilities, and to charge a premium price for its customized solutions3.

The other options are not suitable for customized offerings with infrequent demand, as they involve standardizing some or all of the production process, which reduces the degree of customization and differentiation.MTS is an operating model that involves producing products in advance based on forecasted demand, and then selling them from stock1.MTO is an operating model that involves producing products only after receiving a customer order, but using standardized components and processes1.CTO is an operating model that involves producing products based on a customer order, but using a predefined set of options and configurations1.

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According to the ASCM, the first step in setting improvement priorities for supply chain transformation is to create a business case for change1.This involves highlighting how improvements in the supply chain processes will enable the organization to achieve its strategic goals, such as increasing customer satisfaction, reducing costs, enhancing sustainability, and gaining competitive advantage1.The business case for change should also calculate the improvement potential by using quantifiable business and supply chain metrics, such as revenue, profitability, service level, inventory, and carbon footprint1.Moreover, the business case for change should guarantee cross-functional engagement by involving key stakeholders from different functions and levels of the organization, such as sales, marketing, finance, operations, and senior management1.By creating a solid business case for change, the organization can justify the need for supply chain transformation, secure the necessary resources and support, and align the improvement priorities with the business objectives1.