Manufacturing-Made-to-Stock

Made to Stock (MTS) is the dominant approach used today across many manufacturers. It refers to products that are built before a final purchaser has been identified, with production volume driven by historical demand information. Although the Made to Stock environment providing a rapid response to customer demand, the approach is expensive, mainly in terms of stock. Some firms build all their products to order while others practice made to stock, which is driven by forecast of orders based on historical, seasonal or other trends. Determining appropriate inventory levels balancing market requirements, operational efficiency, and capital costs is a constant challenge.