What does the term "build-to-order" imply in production strategy?

The term "build-to-order" in production strategy signifies that products are made specifically in response to customer orders rather than being produced in advance and held in inventory. This approach allows for greater customization, as manufacturers can tailor the product to meet individual customer specifications and preferences. By waiting for orders before commencing production, it minimizes waste associated with unsold inventory and helps to manage production costs more effectively.

In contrast, the other options describe different production methods that do not align with the build-to-order concept. Manufacturing in bulk to reduce lead times focuses on efficiency and inventory management rather than customization. Producing only standard products limits the flexibility and personalization that build-to-order allows. Lastly, production runs based on projected sales involve creating products in advance based on forecasts, which can lead to excess inventory and does not directly respond to specific customer needs. Thus, the essence of build-to-order is the emphasis on fulfilling individual customer demands immediately after they are confirmed, making it a more responsive and customer-focused approach to manufacturing.