Make To Assemble - MTA

AAA

DEFINITION of 'Make To Assemble - MTA'

A manufacturing production strategy where a company stocks the basic components of a product based on demand forecasts, but does not assemble them until the customer places an order. This allows for order customization. MTA production is basically a hybrid of two other major types of manufacturing production strategies: make to stock (MTS) and make to order (MTO).

INVESTOPEDIA EXPLAINS 'Make To Assemble - MTA'

With MTS, businesses base their production on demand forecasts and final products are assembled before customers have ordered them. Customers can thus get items quickly, but only if the correct quantities have been manufactured, and businesses risk overproduction. At the opposite end of the spectrum, MTO creates items to customer specifications after they are ordered, so it is sometimes a slow process. The MTA production strategy is not as flexible for businesses as the MTO strategy, but it allows customers to get their orders sooner.

RELATED TERMS
  1. Manufacturing Production

    The creation and assembly of components and finished products ...
  2. Make To Stock - MTS

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

    A business production strategy that typically allows consumers ...
  4. Assemble To Order - ATO

    A business production strategy where products ordered by customers ...
  5. Pay To Order

    A check or draft that must be paid via endorsement and delivery. ...
  6. Just In Time - JIT

    An inventory strategy companies employ to increase efficiency ...
Related Articles
  1. Vital Link: Manufacturing And Economic ...
    Fundamental Analysis

    Vital Link: Manufacturing And Economic ...

  2. Doing More With Less: The Sales-Per-Employee ...
    Investing

    Doing More With Less: The Sales-Per-Employee ...

  3. Overseas Investing No Protection Against ...
    Economics

    Overseas Investing No Protection Against ...

  4. When Is A Franchise The Right Investment ...
    Investing Basics

    When Is A Franchise The Right Investment ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center