What characterizes the 'made to stock' inventory method?

The 'made to stock' inventory method is characterized by items being manufactured to meet anticipated demand. This approach involves estimating customer needs based on historical data and trends, allowing for a quicker response to customer orders since the products are readily available in inventory. Companies that use this method produce items in advance and store them until they are sold, which helps streamline operations and reduces lead times for customers. This method is commonly used for high-demand, standard products where forecasting demand is reliable.

In contrast, producing items on demand is indicative of a different inventory strategy known as 'made to order,’ which focuses on creating products only when a customer places an order. Relying solely on customer specifications also aligns with custom production methods, where products are made based on specific requests rather than anticipated general needs. While constant inventory checks can be important in any inventory management system to ensure stock levels are maintained, they are not a defining characteristic of the 'made to stock' method itself.