Make To Order - MTO

AAA

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. ...
Related Articles
  1. Entrepreneurship

    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. thinkstock|istock
    Economics

    Understanding Supply-Side Economics

    Does the amount of goods and services produced set the pace for economic growth? Here are the arguments.
  3. Economics

    A Practical Look At Microeconomics

    Learn how individual decision-making turns the gears of our economy.
  4. Options & Futures

    Explaining The World Through Macroeconomic Analysis

    From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone.
  5. Economics

    ShopRite: Supermarket Model for Modern Shoppers?

    ShopRite is a supermarket model that stands out amid the everyday, widespread, corporate-controlled supermarket chains. But does it meet customers' needs?
  6. Budgeting

    What are the pros and cons of digital gift cards (e-gift cards)?

    Examine the pros and cons of gift cards. Learn about protection in case of loss, monitoring spending by teens and wasted small balances.
  7. Economics

    How A Limited Government Affects A Country's Finances

    Countries with limited governments have fewer laws about what individuals and businesses can and can’t do. What's the net result?
  8. Savings

    Why are EMV cards more secure than traditional debit and credit cards?

    Learn about EMV chip technology for debit and credit cards. Explore different transactions where EMV chips making paying with a card more secure.
  9. Mutual Funds & ETFs

    Consumer Staples Defend against Volatility

    Volatility has crept back into the market, but consumers can defend against price swings by investing in consumer staples.
  10. Investing Basics

    Navigating E-commerce: Alibaba, eBay and Amazon

    Amazon, e-Bay and Alibaba were each game-changers in global e-commerce, with each not only finding its own niche, but inventing new ones as they go along.

You May Also Like

Hot Definitions
  1. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  2. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  4. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  5. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  6. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
Trading Center