MTS 101 · PROCESS OVERVIEW

What is Make to Stock?

See how forecast demand drives production and replenishment into general stock before customer orders arrive.

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.

1. 01

   Forecast Forecast

   Planned independent requirements represent expected demand by material, plant, quantity, and date before customer orders exist.

   Creates Planned independent demand

2. 02

   Plan MRP

   MRP nets forecast requirements, inventory, receipts, safety stock, lead times, and lot sizes to identify shortages. MRP establishes material coverage and dated supply proposals; capacity planning and scheduling determine whether that supply can be executed as planned.

   Creates Dated replenishment proposals

3. 03

   Produce Production

   Planned orders are converted to production orders that schedule operations, reserve components, collect cost, and receive output into unrestricted or quality stock.

   Creates Production and actual-consumption evidence

4. 04

   Fulfil Stock

   Sales orders consume forecast requirements according to strategy and receive ATP confirmations from stock and planned supply.

   Creates Available common stock and valuation evidence

5. 05

   Control Fulfilment

   Service level, forecast accuracy, turns, shortages, excess, shelf life, and obsolescence reveal whether the stocking policy works.

   Reveals Forecast consumption, customer confirmation, and next-planning signal