GlossaryEN1 min readUpdated: Jun 25, 2026

Make-to-Order (MTO) Supply Chain Model

In the Make-to-Order (MTO) supply chain model, a confirmed customer order triggers production—nothing is manufactured speculatively for stock.

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Last updated: 25 June 2026Published: 19 June 2025

Source: https://en.wikipedia.org/wiki/Make-to-order

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In the Make-to-Order (MTO) supply chain model, a confirmed customer order triggers production—nothing is manufactured speculatively for stock. This eliminates inventory carrying costs and removes the risk of unsold or obsolete goods, since output matches actual demand rather than forecasts. The model is widespread in machinery, furniture, printing, and electronics, where customers define configuration, dimensions, or colour. The trade-off is lead time: unlike Make-to-Stock (MTS), the customer waits for production to complete before shipment. MTO is frequently paired with just-in-time raw material procurement to keep supply-side inventory equally lean.

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Make-to-Order (MTO) Supply Chain Model

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Related Terms

Make-to-Engineer Supply Chain Models

Make-to-Deliver Supply Chain Frameworks

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Make-to-Order Cold Chain Delivery Systems

Make-to-Order Cold Chain Supply Network

Make-to-Order Logistics Chain Design

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