MTS 101 · PROCESS OVERVIEW
What is Make to Stock?
See how forecast demand drives production and replenishment into general stock before customer orders arrive.
Make to Stock flow
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How the process works
Make to Stock produces against expected demand before a specific customer order exists. The business accepts inventory risk in exchange for faster availability, so the cycle must continually balance forecast quality, replenishment speed, service level, and the cost of excess stock.
- 01
Forecast — How does forecast demand drive Make to Stock?
Planned independent requirements represent expected demand by material, plant, quantity, and date before customer orders exist.
Example: A seasonal forecast creates monthly requirements for fans before summer orders arrive.
- 02
Plan — How does MRP calculate stock replenishment?
MRP nets forecast requirements, inventory, receipts, safety stock, lead times, and lot sizes to identify shortages.
Example: Available stock covers part of demand, so MRP creates a planned order only for the remaining shortage.
- 03
Produce — How is forecast-driven supply produced?
Planned orders are converted to production orders that schedule operations, reserve components, collect cost, and receive output into unrestricted or quality stock.
Example: A released order produces 1,000 standard units and receives them into plant stock.
- 04
Fulfil — How are customer orders fulfilled from common stock?
Sales orders consume forecast requirements according to strategy and receive ATP confirmations from stock and planned supply.
Example: A customer order consumes the June forecast and is confirmed immediately from finished stock.
- 05
Control — How does MTS balance service with inventory risk?
Service level, forecast accuracy, turns, shortages, excess, shelf life, and obsolescence reveal whether the stocking policy works.
Example: Persistent excess triggers a lower forecast and safety-stock review before the next planning cycle.
STOCK REPLENISHMENT
Forecast first, customer order later
Planned independent requirements trigger replenishment into common stock. Later sales orders consume the forecast and draw from available stock, while actual demand and inventory performance shape the next forecast and safety-stock decision.
See how forecast demand beginsCONTROL POINTS
What keeps MTS in balance?
MTS succeeds when stock is available where and when customers need it without allowing forecast error, long coverage, or obsolete material to accumulate unnoticed.
Forecast and consumption
Planning versions, strategy groups, consumption periods, seasonality, and bias review determine which demand MRP should see.
Explore forecast demand → DURING REPLENISHMENTCoverage and lot sizing
Safety stock, service targets, lead times, lot sizes, and firming rules balance shortage exposure against inventory investment.
Explore MTS planning → AFTER DEMANDInventory learning
Forecast accuracy, fill rate, turns, shortages, excess, shelf life, and obsolescence reveal where the stocking policy needs correction.
Explore inventory control →Explore the planning, production, and control capabilities that make Make to Stock work.
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