what is make to order and make to stock

[Former Member]

what is make to order and make to stock

[Former Member]

Hello Nikhita,

Make to Stock: In MTS scenario you can start the production with Planned independent requirements (from MD61...forecast demand without reference to customer)...much before you receive the sales orders from customers..,leter you can deliver this from warehouse to sales orders. This type of scenario you can use for the industries where they have constant demand for thier products in all seasons and products are not changed frequently and also they want to meet the requirements immediattely to delight the customers.

For this you have use approperaite planning strategies in MRP3 view for the finished parts (example 10, 11, 30, 40, 60 etc).

Make to Order:

In MTO you are working against the customer demands (sales orders). Planning and production will be carried out when you get the actual demand from SD (sales orders)... This type of scenation exists in the induatries where lot of products being manufactured and they changed fron one customer to another customer.

Example: Paint industry where you will be having 3000 sheds of colours and each customer comes with thier own requiremnt. You cannot work here with MTS.

Products will be manufactured exclusively for the particular customer and you cannot switch the stock of one customer to anothe customer.

Please rewards your points if helpful.

Regards

TAJUDDIN

[Former Member]

A)<b>Make-to-order</b> is a process of producing goods individually a particular customer. Production order is created against a Sales Order.All cost and revenues involved in Make-to-order production for sales order are assigned to the goods produced.

B)The materials are not assigned to specific sales orders. In <b>Make-to-stock</b> production Goods are produced independent of orders to provide immediately to customers from the stock.

These production orders are determined on the basis of the MRP group and the strategy group in the material master record.

Regards,

Venkat

[Former Member]

Make to stock is u get the order and then based on the order u do the production. A classic example for this is Rools Roice car. they get the order first and then go for production.

make to stock is whenever a material goes below the reserve level u go for production

[Former Member]

do u think we all are fools ? this is not the right way to get points.

at least copy and paste the code ?

Regards

Prabhu

[dipak_kumar3]

Hi Prabhu ,

This is not the way to behave . Pl correct the way said .

All people are good gentlemen and should try to keep the spirit high .

Ok ...

I am sure you understand .

Thanks

Dipak