Make to Order (MTO)

Make to order (MTO) is a production strategy in which products are manufactured only after receiving a customer order. This contrasts with make to stock (MTS), in which products are manufactured in advance of customer orders.

MTO can be a more efficient production strategy than MTS in some cases. For example, if a product has a long lead time, MTO can help to ensure that customers do not have to wait too long for their orders. Additionally, MTO can help to reduce inventory costs, as manufacturers only produce products that have already been ordered.

However, MTO can also be a less efficient production strategy than MTS in some cases. For example, if a product has a short lead time, MTS can help to ensure that customers can get their orders quickly. Additionally, MTS can help to reduce manufacturing costs, as manufacturers can produce products in bulk.

Ultimately, the decision of whether to use MTO or MTS depends on the specific needs of the business. Businesses that need to produce products quickly and cheaply may prefer MTS, while businesses that need to produce products with a high level of customization may prefer MTO.

Here are some additional details about MTO:

* MTO can be used for a variety of products, including manufactured goods, custom-built homes, and even software.
* MTO can be a more complex production strategy than MTS, as it requires manufacturers to be able to quickly and efficiently respond to customer orders.
* MTO can be a more expensive production strategy than MTS, as it requires manufacturers to have the necessary equipment and expertise to produce products on a per-order basis.

Overall, MTO is a production strategy that can be more efficient than MTS in some cases, but it can also be more complex and expensive. Businesses that are considering using MTO should carefully weigh the benefits and drawbacks of this production strategy before making a decision.