Western Governors University (WGU) MGMT6020 C215 Operations Management Practice Exam

Small lot production is the correct choice as this method specifically accommodates the manufacturing of smaller quantities of products. This production strategy is ideal for situations where customization or flexibility is needed, catering to niche markets or specialized orders. In small lot production, manufacturers can produce limited numbers of items, allowing for a quicker response to market demand or changes in customer preferences.

Unlike mass production, which focuses on economies of scale and produces large volumes of identical goods, small lot production prioritizes flexibility and often allows for more intricate designs. Similarly, large batch production works with significant quantities but doesn't offer the same level of customization or responsiveness as small lot production. Continuous production involves the production of goods without interruption, emphasizing volume over variety, and is typically unsuitable for the creation of small, varied outputs. Thus, small lot production stands out as the method enabling the efficient creation of limited product quantities to meet specific demands.