3 A B C D E F G H I J K L M N O P Q R S T U V W Y

Make to Order

Make to Order (MTO), Build to Order (BTO), and Assemble to Order (ATO) describe slight variations on the same manufacturing concept – make a product after receiving a confirmed order. This is in contrast to the make-to-stock concept, in which production is scheduled to achieve target stock levels.

MTO/BTO/ATO is more common for products which are customized, but may also be important to reduce waste or handle fluctuating demand. In general, customer lead times are higher for MTO/BTO/ATO compared to make to stock.

Make to Stock

Make to Order / Build to Order / Assemble to Order (MTO / BTO / ATO).

Make to Stock (MTS) production involves building finished product to a forecast. The forecast is based on historical sales and expected changes in demand. Finished products are stored in warehouse inventory, and can be shipped as soon as a customer order is received.