Assemble To Order - ATO


DEFINITION of 'Assemble To Order - ATO'

A business production strategy where products ordered by customers are produced quickly and are customizable to a certain extent. The assemble-to-order (ATO) strategy requires that the basic parts for the product are already manufactured but not yet assembled. Once an order is received, the parts are assembled quickly and sent to the customer.

BREAKING DOWN 'Assemble To Order - ATO'

The assemble-to-order (ATO) strategy is a hybrid between a make-to-stock strategy - where products are fully produced in advance - and the make-to-order strategy - where products are manufactured once the order has been received. The ATO strategy attempts to combine the benefits of both strategies - getting products into customers' hands quickly while allowing for the product to be customizable.

  1. Make To Stock - MTS

    A traditional production strategy used by businesses to match ...
  2. Make To Order - MTO

    A business production strategy that typically allows consumers ...
  3. Pay To Order

    A check or draft that must be paid via endorsement and delivery. ...
  4. First In, First Out - FIFO

    An asset-management and valuation method in which the assets ...
  5. Inventory

    The raw materials, work-in-process goods and completely finished ...
  6. Just In Time - JIT

    An inventory strategy companies employ to increase efficiency ...
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