make to order ,sales from stock

[Former Member]

Hi,

What are the important differences between make to order and sales from stock? with respect to availability, scheduling and customer stock

Thanks

[Former Member · Accepted solution]

make to order is nothg but you are creating order for which there are no stock. So u must procure the material either internally or externally, since material is not available. Here, TOR will pass requirements and the material will be procured as per the cofiguration

sales from stock is u r creating order for the materials which are having stock. here material mya b available. so after creating the order availability check will carry out to find the availability of the material.

Regards,

[Former Member]

Hi there,

Make to order is when you manufacture or procure the material only upon order. Stocks are not maintained for those items in the storage loc. As & when the order comes, a production run is triggered through MRP. After the production, stock is posted as reserved sales order stock. Stock is then made available to fulfill the delivery.

Other items are make to stock. Usually for fast moving or consumer goods, stocks are always mainatined in the plant storage loc. As & when the order comes, availability check is done. If stock is available to meet the delivery date, delivery is proceesed or a confirmed delievry date is proposed basing on the replenishment lead time in availability check.

Regards,

Sivanand

[Lakshmipathi]

Dear Yves

The main difference between these two is that

- Production will be initialised only after sale order is created based on the order quantity in Make To Order scenario. Here costing run will be done on sale order basis

- Based on the past experience, fast moving items will be produced in bulk, slow moving items marginally and keep in stock. As and when order is received, despatch takes place. Here costing run will run periodically say once in a month

thanks

G. Lakshmipathi

[Former Member]

Hello,

The main difference is in MTO, production begins only after the sales order is created, the requirements are passed to PP with the specifications.

Another difference, in the outbound delivery of normal sales order, the system takes the delivery material from unrestricted stock. But in MTO scenarion, the stock will be raised with reference to the sales order, and in the delivery the system searches for sales order stock (indicator E).

For sales from stock availability check and scheduling is relevent, bu in MTO, avialability check and scheduling are irrelevent.

Prase