What type of company produces goods only when orders are received?

The correct response relates to the concept of a company that operates based on actual customer demand rather than forecasting or stockpiling inventory. A made-to-stock company relies on estimates of future demand and produces goods in advance to have them ready for quick delivery. However, a company that produces only when orders are received aligns with the just-in-time manufacturing philosophy, which seeks to minimize inventory and focus on producing items as a direct response to customer orders.

Just-in-time production helps improve efficiency and reduce waste, as goods are created specifically for customer needs, ensuring that resources are utilized effectively. The goal of this approach is to maintain a flexible production system that responds promptly to customer demand, ultimately leading to a more agile supply chain.

In contrast, the assembly-line and batch production companies focus on producing goods in bulk or in specific production runs, which does not fit the model of producing only upon receiving orders. Thus, the essence of the correct answer hinges on responsiveness to customer orders and minimizing excess inventory, characteristic of just-in-time strategies.