11. The Ronsi Rist Watch Company, producers of famous brand watches, expanded its product line from 20 to 50 models. Each model requires approximately 100 units of safety stock to provide the customer service levels the company wants from make-to-stock operations. A small engineering change in watch design and new layout in the factory made it possible to shift to an assemble-to-order approach. Each model is assembled using one item from each of five options

(12 face plates, 2 movements, 4 bands, 4 cases, and 2 kits of mounting hardware). The company was disappointed to learn it took about 100 units of safety stock for each option to provide the desired customer service levels, even though it could assemble virtually any order in a matter of hours. The marketing manager said, “Because we still need about 100 units of safety stock for each item, we should go back to our familiar make-to-stock system, which is much easier for my order entry clerks to handle.” Do you agree?