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There are generally the two main processes that trigger when you manufacture a product. They are as follows:
- Make to Stock (MTS)
- The manufacturing process is triggered by the need to maintain minimum stock levels of products so that you don’t run out.
– - This means that you’ll always have stock on hand in a warehouse or shop to sell to customers whenever an order arrives.
- Make to Order (MTO
- The manufacturing process is triggered by an order from a customer. – - The product is manufactured specifically for that customer. There is no stock held in a warehouse or shop.
Your business may use either one or a combination of these processes. To support the above processes you also need to ensure that you have the right raw materials in stock at the right time to be able to manufacture.
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