Assemble to Order (ATO)

Assemble to order (ATO) is a production strategy in which a company assembles a product only after receiving a customer order. This contrasts with make-to-stock (MTS), in which a company produces products in advance of customer orders.

ATO can be a more efficient production strategy than MTS in some cases. For example, if a company has a high level of product customization, ATO can allow the company to produce products that are exactly what customers want. Additionally, ATO can help a company reduce inventory costs, as it does not need to produce products in advance of customer orders.

However, ATO can also be a less efficient production strategy than MTS in some cases. For example, if a company has a low level of product customization, ATO can lead to longer lead times, as the company needs to wait for customer orders before it can begin production. Additionally, ATO can increase costs, as the company may need to invest in additional equipment and training to support the ATO process.

Ultimately, the decision of whether to use ATO or MTS depends on the specific needs of a company. If a company has a high level of product customization and wants to reduce inventory costs, ATO may be a good option. However, if a company has a low level of product customization and wants to minimize lead times and costs, MTS may be a better option.

Here are some additional details about ATO:

* ATO can be used for both manufacturing and service businesses.
* ATO can be a good option for companies that want to reduce inventory costs and offer a high level of product customization.
* ATO can be a less efficient production strategy than MTS in some cases.
* The decision of whether to use ATO or MTS depends on the specific needs of a company.