![]() ![]() procurement: Required components procured externally using purchase order (PO) Planning activity: Planned orders are generated as output of Material Requirement Planning (MRP) With reference to Sales order.Sales activity: Sales order is created with reference to customer order (customer PO).That make-to-stock strategies can support a very close customer-vendor relationship because your objective here is to provide your customers with goods from your stock as quickly as possible You might even want to produce goods without having sales orders, if you expect that there might be customer demand in the future. In make-to-stock production scenario stock is produced independently of orders because you want to provide your customers immediately with goods from that stock later on. The benefit also lies in tracking the costs incurred in the servicing of the sales order in the manufacturing of the goods and the ability of arrive at a profitability of the sales order. ![]() The primary benefits of this process are the ability to track the progress for the sales order and the flexibility to offer to the customer the products to meet their specific requirements. Stock keeping is not usually carried out for products that are made to order. Make-to-order production is a process in which a product is individually manufactured for a particular customer. ![]()
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