In an MTO model, the company manufactures products after receiving an order from the customer, which minimizes its inventory risk because it does not hold large quantities of stock.
In contrast, in an MTS model, the supplier manufactures products to stock them in inventory in anticipation of future orders. This means that the supplier carries significant inventory risk, especially if demand for those products decreases or is uncertain.
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Daesma
1 year, 4 months agoCSPark000
1 year, 5 months ago