Difference between revisions of "MTO"

Revision as of 03:21, 5 October 2017

Make-to-Order is the Supply Chain Configuration Strategy which uses unique, identifiable t:SOs to drive all decision and execution processes. In practice this means stock is assigned to orders early on in the supply chain: at receipt of product in Source-To-Order process or in the Make-To-Order Make process. For inventory transactions both the item number and the Sales Order/reference are recorded*.

Make-to-Order is one of the four Supply Chain Configuration Strategies: Make-to-Stock, Make-to-Order, Engineer-to-Order and Reverse Logistics.

Use Cases

• Assemble-To-Order (ATO)
• Build-To-Order (BTO)
• Configure-To-Order (CTO)
• Package-To-Order (PTO)
• Customization Postponement
• In Retail: Special Orders
• In Services industries: Tailored services

Notes

The emphasis for planning Make-to-Order is on positioning the capacity required to execute (Source, Make and/or Deliver), instead of executing ahead of receiving the Sales Order.

*) Serial-, lot- or batch numbers may also need to be recorded for some use cases.

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