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There are two terms which are frequently used in SCM are " MTO" and "MTS" what does they stand for?

Inventory Management
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Question added by Vaseem Ahamad , Associate Director Operations , Perfetti Van Melle
Date Posted: 2016/02/27
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Muhammad Nadeem
by Muhammad Nadeem , Assistant Income Auditor , Pearl Continental Hotel Lahore

MTO stand for "Material Take Off"

MTS stand for "Make to Stock"

Ahmed Alsaigh
by Ahmed Alsaigh , Quality Manager , General Electric - Saudi Arabia

MTS stands for Make to Stock

MTO stand for Make to order

Vaseem Ahamad
by Vaseem Ahamad , Associate Director Operations , Perfetti Van Melle

"MTO" is stand for make to order i.e production is commenced once order is in hand and second term is "MTS" which means make to store i.e production done well in advance before receiving the order.

fast moving item is always operate on MTS strategy and non-moving item are operate on make to order policy. 

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