brotherton-erpnext/docs/user/knowledge/docs.user.knowledge.make_to_stock.md

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Make-to-Stock Manufacturing

Make-to-stock manufacturing is a system based on keeping stocks ready for customers in order to provide instant availability to customers. Products like FMCG goods and electronics are made and stocked. Here, the production cycle is completed before the sales orders are made.

This strategy is used by businesses to match production with consumer demand forecasts. The make-to-stock (MTS) method forecasts demand, to determine how much stock should be produced. If demand for the product can be accurately forecasted, the MTS strategy can be an efficient choice.

The main drawback to the make-to-stock (MTS) method is that it relies heavily on the accuracy of demand forecasts. Inaccurate forecasts will lead to losses stemming from excessive inventory or stockouts.