Make to order

Parent Category: Compiere

Make to Order

Compiere allows this business production strategy that typically allows consumers to purchase products that are customized to their specifications. The make to order (MTO) strategy only manufactures the end product once the customer places the order. This creates additional wait time for the consumer to receive the product, but allows for more flexible customization compared to purchasing from retailers' shelves' Make To Order - MTO'The make to order (MTO) strategy relieves the problems of excessive inventory that is common with the traditional make to stock (MTS) strategy.

Compiere can schedule Manufacturing after receiving customer's orders allows means to start a pull-type supply chain operation because manufacturing is performed when demand is confirmed, i.e. being pulled by demand. The opposite business model is to manufacture products for stock MTS (Make to Stock), which is push-type production. Compiere can also handle BTO (Build to Order) and ATO (Assemble To Order) in which assembly starts according to demand. There are various models for Make To Order. For example, in some cases, the process of assembling prepared parts starts when actual demand occurs. Or, in other cases, the production process starts with the obtaining of materials and parts, or further back from development designing (engineering).

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