Manufacturing Production

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Dictionary Says

Definition of 'Manufacturing Production'

The creation and assembly of components and finished products for sale. Three common types of manufacturing production are make-to-stock (MTS), make-to-order (MTO) and make-to-assemble (MTA).

Investopedia Says

Investopedia explains 'Manufacturing Production'

The MTS strategy is based on demand forecasts, so it makes the most sense when demand can be predicted with reasonable accuracy. Companies can lose money with this strategy if they manufacture too much or too little.

 

MTO allows customers to order products built to their specifications. Companies alleviate inventory problems with MTO, but customer wait time is usually longer.

 

MTA is a hybrid of the two: companies stock basic parts based on demand predictions, but do not assemble them until customers place their orders and can offer customization.

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Related Definitions

  1. Assemble To Order - ATO

    A business ...
  2. Just In Time - JIT

    An inventory ...
  3. Make To Assemble - MTA

    A manufacturing ...
  4. Make To Order - MTO

    A business ...
  5. Make To Stock - MTS

    A traditional ...
  6. Pay To Order

    A check or draft ...
  7. Supply Management

    A broad term ...
  8. Capacity Requirements Planning - CRP

    An accounting ...
  9. Production Rate

    In ...
  10. Cost Of Revenue

    The total cost ...

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