Make-to-Stock Manufacturing

The make to stock manufacturer is similar to the Make to Order manufacturer, except the lead time for their product delivery is less than the lead time to manufacture the product.  The market generally drives this, and forces them to keep an inventory of their finished goods to sell.

Some make to stock manufacturers can cope with their fluctuations within safety stock. For others, a sales forecast is a critical requirement, as they must have some sense of the sales volume expected to know what to build.

This type of manufacturer relies on finished goods inventory availability to be able to sell into their market.

What’s Important:

  1. Production (standard) costing
  2. MPS
  3. MRP
  4. CRM
  5. Inventory Control
  6. WIP control
  7. Sales Forecasts

What’s Not Important:

  1. Job (actual) Costing
  2. Estimating
  3. Quotations (except as part of CRM)
  4. Usage Forecasts