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Discuss the differences between Make To Stock (MTS), Assemble To Order (ATO), Make to Order (MTO),...

Discuss the differences between Make To Stock (MTS), Assemble To Order (ATO), Make to Order (MTO), and Engineer To Order (ETO).

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In the case of commodity (product) need to predict for future sales, the “Make to Stock” (MTS) planning comes into the picture. It refers to have the production with no actual requirements available. It is actually useful in forecast planning so as to reduce the lead time for delivery.

When the defined specification or requirements are available for the standard products, apart from MTS and no forecast. As soon as the requirement comes from customer, the production begins. Then it is termed as “Make to Order” production.

“Assemble to Order” (ATO) appears as when both upstream and downstream are used for making to stock and at the same time pulling to order. It allows stocking point placement and place to structure. It helps in waste reduction and flexible in nature.

“Engineer to Order” (ETO) is useful in building complex structures. It helps in organizing the project tasks and take longer time to product customized products.

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