Critical Planning Issues in MTO Environment


Manufacturing Companies Differ in the way they meet their demand. Some deliver products to their customers from finished goods inventories as their production anticipates customers’ orders; others, however, manufacture only in response to customers’ orders.


A make-to order (MTO) manufacturing environment has to supply a wide variety of products, usually in small quantities, ranging from standard products to all orders requiring a customized product. MTO companies primarily compete on delivery time and reliability in meeting due dates and flexibility to adapt (to product mix and volume). Likewise, MTO companies, like all companies, are subject to competition on price. In recent years it has however become increasingly normal to produce a wide range of pr