is a production method where a company makes products before customers order them. The finished products are stored in a warehouse and are ready to ship when an order arrives.
Manufacturers often use MTS for products with steady demand and standard designs. It can help them deliver orders quickly. However, making too much can leave the company with unsold stock, while making too little can cause shortages.
An ERP system can support MTS by using sales history, forecasts and current stock levels to plan production. It can also connect material planning, purchasing, production schedules and warehouse inventory. This helps the company balance product availability against the cost of holding stock.
