Make To Stock - MTS


DEFINITION of 'Make To Stock - MTS'

A traditional production strategy used by businesses to match production with consumer demand forecasts. The make-to-stock (MTS) method forecasts demand to determine how much stock should be produced. If demand for the product can be accurately forecasted, the MTS strategy can be an efficient choice.


The main drawback to the make-to-stock (MTS) method is that it relies heavily on the accuracy of demand forecasts. Inaccurate forecasts will lead to losses stemming from excessive inventory or stockouts. Common alternative production strategies include make-to-order (MTO) and assemble-to-order (ATO).

  1. Supply

    A fundamental economic concept that describes the total amount ...
  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. Common Stock Equivalent

    Securities such as stock options, warrants, preferred bonds, ...
  5. Make To Order - MTO

    A business production strategy that typically allows consumers ...
  6. Pay To Order

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