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MTO (Make To Order)

If an item is expensive, it is also costly to hold in storage. For example, an aircraft maker may have to consider this strategy because airplanes are expensive products. The aircraft maker can make an airplane according to what the customer requires. Lean-Manufacturing-Japan has the following definition of the term :. In a make-to-stock system , the company produces the goods beforehand and stores them in a warehouse.

  • Make-to-Order Production – Semifinished Goods Planning and Assembly.
  • Eigenspaces of Graphs (Encyclopedia of Mathematics and its Applications 66).
  • Final assembly schedule.
  • Procurement;
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By adopting a make-to-order strategy, the company will have a competitive advantage. Being able to give the customer something which is tailor-made is a huge plus in the competitive marketplace. When a company has a competitive advantage , it means that it has an edge over its rivals.

SAP SD Training - Make to Order Production (Video 22) - SAP SD

They may also have to pay a premium for having something which the supplier has customized. The supplier may focus on the internal design or the functioning part of the product.

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Assemble to Order (ATO)

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  • Assemble to Order (ATO);
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Assemble to Order Strategy

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Make-to-Order Assembly Management | Rainer Kolisch | Springer

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Make-to-Stock in an Assemble-to-Order World

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