material for Make to stock and make to order.

[Former Member]

Hi sapa gurus.

Can any one send the materials of make order and make stock business process. with conf details.

thanks in advance

Ramchandra

[Former Member · Accepted solution]

Hi Rama,

I can give some inputs the make to stock and make to order Scenarios with Examples.

Make to stock:

without having any purchase orders from the customer, products/Materials will be manufactured and keep as stock in plants,warehouses,depots etc.,

when ever receives orders from the customers and will delivery the goods to customers.

Ex:- Hindustan Lever Limited - produces soaps, detergents,cosmatics etc.,

when ever the order comes from the customers they will delviery goods from the availabe stock.

Make to Order:

in this scenario, only manufacuture/produce goods after getting the Order from the customer.will not keep the stock in the plant or warehouse.

Ex :- BHEL - Bharat Heavy Electrical Limited.

After getting the order from customer only they will produce the goods.

and very important point, In SAP while doing this in item category Special stock indicator - E should be maintained in make to order scenario, where has the the special stock indiactor is not requried for Make to stock sales.

Reward if really helpful,

Sateesh.Kandula

[Former Member]

Hi Ramachandra,

For configuration details please check this link :

<a href="http://help.sap.com/saphelp_erp2005vp/helpdata/en/dc/a13c3250f011d5b68c0004ac160649/frameset.htm">MTO and MTS Configuration</a>

<a href="http://help.sap.com/bp_imcv1500/IMC_DE/HTML/SCM/S37_MTOwCompAvChck_EN_DE.htm">MTO</a>

<a href="http://www.sap.com/industries/automotive/businessprocesses/suppliers/maketoorder.epx">MTS</a>

Hope it helps. Please reward if useful.

Thanks & Regards

Sadhu Kishore

[Former Member]

make to stock:

A manufacturing method in which finished goods are produced and stocked prior to receipt of a customer order. It uses a forecast based on past demand history to initiate production of end items when inventory has fallen below desired levels, instead of waiting until a final quantity and configuration is described on a customer order. It can be also defined in the following way A production environment where end item products are usually finished before receipt of a customer order. Customer orders are generally filled from finished goods inventories, and production orders are used to replenish finished goods inventories Manufacturing Engineering - The engineering discipline with responsibility for designing, maintaining, and improving the manufacturing production process.

Make to Order :

A production environment where a product or service can be made after receipt of a customer's order. The end item finished product is generally a combination of standard components and custom designed components that meet the unique needs of a specific customer. Where options or accessories are pre-stocked prior to customer orders, the term assemble-to-order is frequently used. Also known as assemble to order.

reward points if helpfull

regards

Biju