GlossaryEN1 min readUpdated: Jun 10, 2026

Make-to-Order (MTO) Supply Chain Model

In the Make-to-Order (MTO) model, production begins only after the customer places an order.

Last updated: 10 June 2026Published: 19 June 2025

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

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In the Make-to-Order (MTO) model, production begins only after the customer places an order. This reduces inventory carrying costs and eliminates the risk of overproduction or obsolescence—manufacturing responds to actual demand. Prevalent in machinery, print, furniture, and electronics where products are built to customer specifications (colour, size, configuration). Trade-off: longer lead times than Make-to-Stock approaches. MTO is often paired with just-in-time procurement to synchronise raw material arrivals with production schedules.

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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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SCOR model

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