Make To Order - MTO

Dictionary Says

Definition of 'Make To Order - MTO'

A business production strategy that typically allows consumers to purchase products that are customized to their specifications. The make to order (MTO) strategy only manufactures the end product once the customer places the order. This creates additional wait time for the consumer to receive the product, but allows for more flexible customization compared to purchasing from retailers' shelves.
Investopedia Says

Investopedia explains 'Make To Order - MTO'

The make to order (MTO) strategy relieves the problems of excessive inventory that is common with the traditional make to stock (MTS) strategy. Dell Computers is an example of a business that uses the MTO production strategy.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Supply Management

    A broad term ...
  2. Supply Management

    A broad term ...
  3. Just In Time - JIT

    An inventory ...
  4. Assemble To Order - ATO

    A business ...
  5. Pay To Order

    A check or draft ...
  6. Make To Stock - MTS

    A traditional ...
  7. Manufacturing Production

    The creation and ...
  8. Make To Assemble - MTA

    A manufacturing ...
  9. Pull-Through Production

    A method used in ...
  10. Boom

    A period of time ...

Articles Of Interest

  1. Cost-Push Inflation Versus Demand-Pull Inflation

    Gain a deeper understanding of aggregate supply and demand, forces which raise the price of goods and services.
  2. Explaining The World Through Macroeconomic Analysis

    From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone.
  3. Understanding Supply-Side Economics

    Does the amount of goods and services produced set the pace for economic growth? Here are the arguments.
  4. A Practical Look At Microeconomics

    Learn how individual decision-making turns the gears of our economy.
  5. Should You Invest Your Entire Portfolio In Stocks?

    It is true that stocks outperform bonds and cash in the long run, but that statistic doesn't tell the whole story.
  6. The Uses And Limits Of Volatility

    Check out how the assumptions of theoretical risk models compare to actual market performance.
  7. Risk Tolerance Only Tells Half The Story

    Just because you're willing to accept a risk, doesn't mean you always should.
  8. 5 Tips For Diversifying Your Portfolio

    A diversified portfolio will protect you in a tough market. Get some solid tips here!
  9. Invest Like A Pro

    By following the strategies of the pros, even a beginner can learn to invest like an expert.
  10. 5 Nobel Prize-Winning Economic Theories You Should Know About

    Here are 5 prize-winning economic theories that you’ll want to be familiar with.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center