Made to Order

• specially made according to a customer’s specification
• MTO or BTO
  • made to order / make to order
  • built to order
• in contrast to MTS (make-to-stock)

AI Overview / Generative AI

Make-to-order (MTO)

• is a manufacturing strategy where a product is only made after a customer places an order
• is also known as build-to-order (BTO)
• is a pull-type operation, meaning production is driven by demand rather than forecasts
• is a good fit for businesses that sell highly customizable or bespoke products, such as:
  Bespoke furniture, Tailored clothing, Specialized machinery, and Car or airplane companies
• in contrast to MTS (make-to-stock)
• advantages:
  1. Customization:
     MTO allows customers to purchase products that are customized to their specifications.
  2. Waste reduction:
     MTO minimizes excess inventory, which can lead to waste.
  3. Efficiency:
     MTO focuses on making the product according to the customer’s specifications, so workers and machines are more efficient.
  4. Variety:
     MTO offers a greater variety of products
• disadvantages:
  1. Longer wait times:
     Customers may have to wait longer to receive their product.
  2. Higher prices:
     Customization can increase costs, which may result in higher prices for consumers.
  3. Irregular sales:
     It can be difficult to predict when demand will arise for a particular customized product.

Make-to-stock (MTS)

• make-to-stock
• is a push-type operation where products are manufactured before customer orders are received