Assemble To Order - ATO

What is 'Assemble To Order - ATO'

Assemble to order (ATO) is 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.

RELATED TERMS
  1. Assembly Line

    A production process that breaks the manufacture of a good into ...
  2. Make To Assemble - MTA

    A manufacturing production strategy where a company stocks the ...
  3. Mass Production

    The manufacturing of large quantities of standardized products, ...
  4. Manufacturing Production

    The creation and assembly of components and finished products ...
  5. Bill Of Materials - BOM

    A comprehensive list of raw materials, components and assemblies ...
  6. Make To Order - MTO

    A business production strategy that typically allows consumers ...
Related Articles
  1. Markets

    Vital Link: Manufacturing And Economic Recovery

    Manufacturing output is one of the clearest signs that an economy is recovering from a recession.
  2. Markets

    Are These the Top 3 Utility Stocks of 2016?

    When it comes to utilities and resiliency, bigger isn't always better. These three lesser known stocks are likely to offer more resiliency than most.
  3. Markets

    What It Takes To Be "Made In The USA"

    Discover the rules and standards behind the "Made in the USA" label.
  4. Entrepreneurship & Small Business

    Understanding Marketing

    Marketing includes all of the activities of a company associated with buying and selling a product or service.
  5. Markets

    Understanding Marginal Cost of Production

    Marginal cost of production is an economics term that refers to the change in production costs resulting from producing one more unit.
  6. Financial Advisor

    How to Create a New Financial Product in 10 Steps

    The 10 steps outlined here are essential to the creation of a new financial product.
  7. Investing

    What is a Trade Credit?

    Trade credit means that a customer purchases goods from a seller who allows the purchaser to pay for those goods at a later time.
  8. Markets

    Understanding the Product Life Cycle

    Product life cycle is the period of time during which a product is conceived and developed, brought to market and eventually removed from the market.
  9. Trading

    These Financial Products Are Too Complex For The Average Joe

    Structured financial products are so elaborate that investors are unable to assess costs and risk.
  10. Markets

    What's Behind the Decline in Productivity Numbers? 

    There are several theories and hypotheses about low productivity numbers in the American economy. This article examines some of them.
RELATED FAQS
  1. How does specialization help companies achieve economies of scale?

    Learn the definition of economies of scale, why it is important and how specialization during production can lead to economies ... Read Answer >>
  2. What are some ways a company can expand its product line?

    Understand what a product line is and why it's important. Learn about specific ways in which a company can expand its product ... Read Answer >>
  3. What are the similarities between product differentiation and product positioning?

    Learn how two marketing strategies, product differentiation and product positioning, are similar and work together to effectively ... Read Answer >>
  4. Do production costs include the marginal cost of production?

    Learn more about marginal costs of production and production costs. Find out how businesses can use marginal cost calculations ... Read Answer >>
  5. Is there any way to reverse the law of diminishing marginal returns?

    Learn more about how consumer spending, supply and demand impact production decisions. Find out more about the law of diminishing ... Read Answer >>
  6. What are the differences between product bundling and product lines?

    Understand the differences between product bundling and product lines. Learn why a company would want to expand its product ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center