![]() Customer Order Decoupling Points (white rounded box in the diagram) typically reside in the first MTS process (when looking upstream):įor Engineer-to-Order replace Customer Order with Customer Intent. The OpenReference Supply Chain Operations Domain recognizes these differences in behavior at level-2: Make-to-Stock ( MTS), Make-to-Order ( MTO, CTO, ATO, PTO), and Engineer-to-Order ( ETO). ![]() Optimization is realized by balancing capacity and lead-times. Take advantage of quantity discounts, because purchasing in larger quantities can reduce the cost of producing or shipping goods. This kind of inventory generally occurs in retail traders. Decoupling stock is also helpful if, for some reason, there is a sudden influx in demand. Decouple the company from fluctuations in demand and stock up on those items that will provide choices for customers. For example, inventory used by one stage of a manufacturing. Also known as safety stock or buffer inventory, decoupling stock refers to inventory set aside exclusively for supply chain errors, delays, or unexpected events that can cause a reduction in stock availability.
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