Difference between Made-to-order and Made-to-stock (MTS和MTO之间的区别)

Made-to-stock Scenario:

 

If a material is defined as a made-to-stock material, i.e., materials which are not marked with any strategy types or strategy groups in the SAP material master MRP 3 view or materials which are marked with collective requirements in the MRP 4 screen, the system calculates the material requirements through the use of a pretty simple algorithm; where it takes into account the stock in the storage locations, the receipts expected for the materials through purchase or production and the incoming demands.

 

In a made-to-stock scenario, the incoming customer requests are fulfilled from the inventory. The made-to-stock products are normally the consumer products or products which have a monopoly market and are sold out of the existing inventory. Such products are developed and produced continuously over the years till the product comes to the end of its life cycle.

 

In such scenarios, the shop floor or the production team never knows, for whom the product is being produced. The customer demands and the market situations can only be forecasted and used as a basis for future production. In SAP the forecasted quantity is evidently used in a form of planned-independent-requirement.

 

Made-to-stock production quantities are entered in SAP through the use of “Planned independent requirements” (transaction code MD61) which are subsequently planned by SAP MRP run. The planned independent requirements can be entered manually or the requirement can be pulled in from forecast or it can be pulled in from the sales and operation information structures (information structures which carry the sales information at levels defined by the organization).

 

 

Made-to-order Scenario:

 

In cases where the material is defined as made-to-order, i.e., materials which are marked with a made-to-order strategy in the MRP 3 view of the SAP material master and marked with individual requirements in MRP 4 view, the system calculates the material requirements through the use of an algorithm which takes in to consideration the receipts expected for the material through purchase or production and the incoming sales order demands. Here the system does not take into account the storage location stock of the material (since the stock in the storage location for the material is always tagged for a customer order and cannot be used anywhere else).

 

In a made-to-stock scenario, the incoming customer requests are accepted and produced thereafter and ultimately delivered to the very customer. The example of such a scenario can be high end products like jewelry or high end equipments or very costly product. These products are normally configured by the customer and the order is produced according to the customer requirements or by the design provided by the customer. The Sales order is created or configured according to the customer requirements and passed on to the production team.

 

In such a scenario, the tracking of the sales order from its creation to planning to production to inventorying to delivery can be easily tracked unlike in made-to-stock scenarios, where the incoming sales orders are not tracked in the plant, but are fulfilled by the existing stocks.