Make To Order - MTO

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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 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.

RELATED TERMS
  1. Pull-Through Production

    A method used in just-in-time manufacturing processes to order ...
  2. Make To Assemble - MTA

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

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

    A traditional production strategy used by businesses to match ...
  5. Assemble To Order - ATO

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

    A check or draft that must be paid via endorsement and delivery. ...
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