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MTS & MTO Senarious

This document discusses the differences between make-to-order (MTO) and make-to-stock (MTS) production scenarios in SAP. In MTO, production orders are created based on sales orders to ensure a strong link between sales and production. Progress on individual production orders can be monitored to keep customers informed. In MTS, production planning is based on sales forecasts for a period of time. The ERP system supports forecasting using statistical data and historical information to transform forecasts into production plans. MTS allows for more even production spread over time compared to MTO which can be more hectic.

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Koustubha Khare
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606 views

MTS & MTO Senarious

This document discusses the differences between make-to-order (MTO) and make-to-stock (MTS) production scenarios in SAP. In MTO, production orders are created based on sales orders to ensure a strong link between sales and production. Progress on individual production orders can be monitored to keep customers informed. In MTS, production planning is based on sales forecasts for a period of time. The ERP system supports forecasting using statistical data and historical information to transform forecasts into production plans. MTS allows for more even production spread over time compared to MTO which can be more hectic.

Uploaded by

Koustubha Khare
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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MTO – MTS Scenario in SAP

MTO – MTS Scenarios in SAP


Make-to-Order
Your production orders are caused by sales orders. This means that your
ERP system must have a strong and intelligent link between its sales order
module and the production-planning module. Sales orders must be
translated into production orders. You should be able to monitor the
progress of individual production orders so that you can keep your
customers informed about a particular sales order.

Make-to-Stock
In this case production planning is based on a sales forecast for a
certain time, a year, six months or a quarter. The ERP must be able to
support the process of making a prognosis by providing statistical data
and projections based upon historical information. The transformation
of a sales forecast to a production planning is roughly similar to that
described above.
The advantage of producing for stock is that you are in most cases able
to spread the production evenly over a given time period, avoiding
most of the hectic scenes that often characterize make-to-order
production. There is much room for achieving a highly efficient and
effective manner of production.
Make-To-Order Scenario in SAP
Release Purchase
Purchase Order

Purchase
Sales Order Requisition
MRP Production
Planned
Order Product
Cost
Analysis
Release Work
Order

Work Order
Master Data Specific Data
Make-To-Stock Scenario in SAP
Release Purchase
Purchase Order

Purchase
Forecasts Requisition
MRP Production
Planned
Order Product
Cost
Analysis
Release Work
Order

Work Order
Master Data Specific Data

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