Make-to-Stock and Make-to-Order

[former_member417490]

Hi Sap Gurus,

Could anyone tell me how do I know whether a material is for Make-to-stock or Make-to-order and how do I differentiate between them.

Thanks N Regards,

Siddhartha

[former_member550050 · Accepted solution]

Hi

Make to stock is normal scenario where we manufacture material and keep stocks and sell as on when customer order comes

Make to order is a scenario where we wont maintain stocks of that material and when customer order comes against that order we manufacure or procure the material and supply against that customers sales order or that particular sales order

This is business process

how do I know whether a material is for Make-to-stock or Make-to-order 
and how do I differentiate between them.

In SAP ---MMR ---MRP view strategy group decides whethet the material is Make to stock or Make to order

Strategy group 20 is for MTO and Strategy group 10 is for MTS

In MTO scenario the production process or procurement process starts after the customer's sales order is registered

The customer order is the base for production process or procurement process

Once the manufactiring or procurement is over that stock is managed as a sales order stock in our plant and will be used only for that particular sales order

But MTS we just procure or produce the stocks and keep it

In SD account determination In MTO scenario condition type KOFK is used --(MTO process involves costing)

In SD account determination In MTS scenario condition type KOFI is used

Regards

Raja

[Former Member]

This message was moderated.

[Former Member]

Hi,

Make to stock - Manufacture and maintain stock and sales made by this stock.

Make to order - Customer place order then rest of thing like procuring rawmaterial,productions starts and then delivery to customer.

http://help.sap.com/saphelp_ides/helpdata/en/51/9532c0a1fa11d189ba0000e829fbbd/frameset.htm

http://www50.sap.com/businessmaps/092BF1DFEEB2456DADD0DD0284EBE8A2.htm

Kapil

[Former Member]

Hi Sid,

I am little confuse after reading your question.

As per my understanding MTO is a process when vendor got an order then an automatic process checks machine capacity, schedules production, and determines the requested productu2019s availability date. This enables vendors to make immediate, reliable offers and commitments to their customers for the requested quantities and delivery dates.

Where MTS generally used by Manufacturers those are working on Make to order model that configuring their finished goods after sales order entry.

So MTO is related to Vendor and MTS is related to manufacturer.

Now tell me is your question answered, if not then please explain your question.

Regards,

MT

Edited by: M T on Mar 12, 2010 1:59 PM

[former_member417490]

Hi MT,

I want to know how I know in sales order that the material is MTO or MTS.

Could you please tell me the configuration of MTO.

Thanks N Regards,

Siddhartha

[Former Member]

Hi Sid,

Try this document, hope it helps.

http://help.sap.com/bp_bblibrary/600/documentation/E41_BB_ConfigGuide_EN_JP.doc

Regards,

MT