For customized offerings with infrequent demand, which operating model should be chosen?

ETO is an operating model that involves designing and producing customized products or services based on the specific requirements of each customer1.ETO is suitable for customized offerings with infrequent demand, as it allows the organization to create unique and differentiated value propositions for each customer, and to avoid holdingexcess inventory of products that may not sell well2.ETO also enables the organization to leverage its engineering and innovation capabilities, and to charge a premium price for its customized solutions3.

The other options are not suitable for customized offerings with infrequent demand, as they involve standardizing some or all of the production process, which reduces the degree of customization and differentiation.MTS is an operating model that involves producing products in advance based on forecasted demand, and then selling them from stock1.MTO is an operating model that involves producing products only after receiving a customer order, but using standardized components and processes1.CTO is an operating model that involves producing products based on a customer order, but using a predefined set of options and configurations1.

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