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Production

Former Member
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Hi guru,

What is difference between "Make to order" and "Make to Stock".

Pl.provide me with the solution.

Regs,

SAP Community.

Accepted Solutions (0)

Answers (4)

Answers (4)

Former Member
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Hi Vimal,

Make to order

1) When you create a sales order the requirement pass on to MD04.

2) Based on these requirements,planned orders are created in Production and hence these planned orders gets converted to purchase requisition or production order.

3) So the planned orders which gets created against a particular sales order is called as make to order.

Make to stock

1) You enter the forecast in transaction MC94 and this gets converted to demand management in MD62 and hence start appearing in MD04.

2) Based on these independent requirements also a planned order is created which later on gets converted to pirchase requisition or production order.

3) So planned orders created with independent requirements are called as make to stock order.They are created independent of any sales order but are just based on the forecast.

Reward points if it helps.

Regards

Karan

Former Member
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Make to stoMake-to-order production is a process in which a product is individually manufactured for a particular customer. In contrast to mass production for an unspecified market where a material is manufactured many times, in make-to-order production a material is created only once though the same or a similar production process might be repeated at a later time.

You can use make-to-order production:

For branches of industry or products where a small quantity of products with a large number of different characteristics are manufactured

When a product has to be assembled particularly for a sales order

Stockkeeping is not usually carried out for products that are made to order. In companies using make-to-order production, the demand program only determines the production area, in which various variant types are produced. Depending on how you track the costs associated with make-to-order production, there are two ways to process make-to-order items during sales order processing:

make-to-stock production based on a run schedule header. This means that production is controlled without a direct reference to the sales order. Run schedule quantities determine the dates and quantities. The requirements are created in Demand Management or in a similar component. Sales orders are delivered from stock and settled against planned independent requirements in Demand Management, according to the planning strategy you select.

Former Member
0 Kudos

hi,

MAKE TO STOCK: business produces material based on MRP irrespective of the sales order is called as make to stock

make to order: if the standard product is going to be changed slightly according to the customer requirement then business is going to manufacture that material only for that customer it is called as make to order

in make to order inventory is going to be maintained with the special stock indicator E

please reward points if the answer is helpful

Regards,

Murali

Former Member
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HI

MAKE TO ORDER:

FOR HEAVY MANUFACTURING COMPANIES LIKE BHEL/ CATERPILLAR ,THEY MANUFACTURE HEAVY MACHINERY ON ORDER. THOSE KIND OF GOODS WERE NOT BE READY FOR DELIVERY OR IMMIDIATE CONSUMPTION. FOR THIS THE CUSTOMER SHOULD PLACE THE ORDER AND THEN THE MANUFACTURER STARTS THE PROCESS OF MAKING THAT PRODUCT.

MAKE TO STOCK

THIS IS REGULAR PROCESS FOR MOST OF THE ORGANIZATIONS TO CREATE STOCK IRRESPECTIVE OF THE ORDERS / DELIVERIES. THESE GOODS WILL BE STOCKED WITH THE QUANTITIES ALLREADY EXISTED OR CREATES NEW STOCK. BUT THESE GOODS ARE NOT BE MANUFACTURED ON PARTICULAR ORDER. SO THIS PROCESS IS CALLED MAKE TO STOCK.

HOPE THIS HELPS YOU

SURIYA.

surya kanth