Under which of the following circumstances will firms generally make to stock?

Firms generally opt to make to stock when required delivery times are shorter than the time needed to manufacture the product. This situation necessitates maintaining a stock of finished goods to meet customer demand promptly. By producing items in advance and holding them in inventory, companies can ensure that they can fulfill orders quickly, thus enhancing customer satisfaction and maintaining competitiveness in the market.

In contrast, when demand is unpredictable, businesses may struggle to determine how much to produce, making it less likely that they would opt for make to stock. Similarly, if there are many product options or customers require special engineering, the variability and customization involved often lean towards make to order approaches, where items are produced to meet specific individual requirements rather than being pre-manufactured and held in stock.