MTS refers to making standard products to stock based on forecasts before orders are received. ATO is making standard products by stocking some components and finishing assembly after orders. MTO makes standard products to order after receiving a committed customer order. ETO involves custom projects that have never been built before requiring new specifications for complex structures. The customer decoupling point is where demand changes from independent to dependent on customer orders.

1. VENDOR
CUSTOMER
MTS: Make to stock
ATO: Assembly to Order
MTO: Make to Order
ETO: Engineer to Order
Wortmann Classification: intro
Customer Decoupling point
Raw Material Components Semifinished Finished

2. Wortmann Classification: definitions
MTS (Make to Stock): standard product made to a forecast before any committed orders come in. When your product is a commodity that can be sold
out of a catalog and is defined and specified through a master record, it can be planned; if it is somewhat predictable. A steady consumption in the past
helps predicting the future, however, there may be events in the future which require a more forward-looking planning process
ATO (Assembly to Order): standard product where some components are held in stock and the finished product is finished after the order comes in.
This type of strategy allows for a placement of a stocking point, the inventory/order interface, at the most effective spot in the product structure. What
this means is that you can decide at what point in the BoM, material is kept in stock readily available for further processing. Therefore upstream of the
inventory/order interface we are making to stock and downstream from it we are pulling to order.
MTO (Make to Order): standard products not held in inventory and made after a committed order comes in. This strategy still is for standard products
which have a clearly defined specification. Other than MTS, there is absolutely no forecast on products which are made to an order from a customer.
You start production after the customer’s request comes in and not, like with MTS, beforehand.
ETO (Engineer to Order): complex structures and customer specified projects which were never built before and make it impossible to be handled with
standard variations. Is used when complex structures are build. In most cases these projects organize many tasks and follow a long timeline to produce
large, highly customized products to specific customer specifications. The finished product, and also many components and subassemblies, have never
been built before and receive brand new product codes. Work Breakdown Structures and Projects are used to structure and manage the procurement
of long lead-time purchased parts, the dependencies in production and procurement and cost and timely delivery of the final product.
CDP (Customer Decoupling Point - AKA Customer Order Decoupling Point CODP ): the point at wich demand change from independent to dependent. It
is the point at which the company becomes responsable for determining the time and quantity of material to be purchased, made or finished.

3. Wortmann Classification: others
VENDOR
CUSTOMER
MTS: Make to stock
ATO: Assembly to Order
MTO: Make to Order
ETO: Engineer to Order
Raw Material Components Semifinished Finished
Vendor’sagreementsQuality
Customer’sagreementQuality
StockValue
Forecasting

4. Wortmann Classification: SAP processes mapping
Purchase Orders Production Orders
Sales Order
Delivery
Purchase Orders Production Orders
Sales Order
Delivery
Time
MTS: ETO:
Forecast
Project/WBS