Make-to-order manufacturing is a manufacturing company that makes products after they have been ordered. This strategy allows the manufacturer to eliminate the risk of excessive inventory. It does however come with it’s own set of challenges.
While the MTO manufacturer has their challenges, they do eliminate possible overhead of raw materials and labor. Instead of stocking up on orders based on the previous years, the MTO manufacturer produces as needed. The company can potentially save space, materials, and labor.
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