What is MTS (Make-to-Stock)?
A manufacturing strategy where products are made in advance based on demand forecasts and stocked in inventory.
Definition
Make-to-Stock (MTS) is a traditional manufacturing strategy where products are produced based on demand forecasts and stored in inventory (finished goods) until sold. MTS is ideal for standardized, high-volume products with predictable demand. The advantage is immediate availability for customers; the risk is overproduction, obsolescence, and carrying costs if forecasts are inaccurate.
How MTS Works in ERP
In ERP, MTS relies heavily on demand forecasting, master production scheduling (MPS), and inventory management. The ERP uses historical sales data and forecasts to generate production plans, triggers MRP for material requirements, and manages finished goods inventory levels with safety stock calculations and reorder points.
ERP Vendors with Strong MTS
SAP S/4HANA Public Cloud
Standardised cloud ERP with quarterly auto-upgrades and low TCO
Oracle NetSuite
The original cloud ERP — built for fast-growing companies
Microsoft Dynamics 365
Modular ERP + CRM tightly integrated with Microsoft 365
Infor CloudSuite
Industry-specific cloud ERP suites on AWS
Frequently Asked Questions
What is the difference between MTS and MTO?
MTS produces goods based on forecasts and holds inventory for immediate fulfillment. MTO only starts production when a customer order is received. MTS offers faster delivery but carries inventory risk; MTO has no inventory risk but longer lead times.