Make To Stock - MTS
Categories: Company Management, Metrics
If you go to an expensive restaurant, they make your food to order. Fresh scallops don't go onto the skillet until just after you order then from the server. Otherwise, the ingredients just sit in the fridge. The chef never just makes an order of scallops "just in case" someone walks in wanting some. That situation represents "make to order."
Meanwhile, a fast-food joint might go for a "make to stock" approach. Jimmy's Roadside Fat Burger doesn't wait for someone to order the Might Meat Stacker. They just keep making the sandwiches and sticking them under heat lamps. Eventually, someone will come in and order one before they rot...hopefully.
The idea of "make to stock" centers around anticipating demand. You don't have to wait for an order, because you're pretty sure someone will eventually purchase the product. This situation contrasts with make to order, which doesn't start the manufacturing process until a customer makes an official request to purchase it.