Factories that sell to customers from inventory are understood in terms of make-to-stock (MTS). The word make-to-stock means to produce (make) products and then put them in stock to sell slowly.
The factory assembles some items (options) with the customer’s specified requirements as assemble-to-order (ATO), for example, the computer company Dell specializes in assembling computers. The word assemble-to-order means to assemble according to the customer’s order.
Factories that manufacture raw materials, components, and components are often called make-to-order (MTO), meaning they manufacture products according to specific customer specifications and requirements.
The factory that works with customers to design products, then manufactures products from purchased materials, parts or components is called engineer-to-order (ETO).
Most of the companies in Vietnam are outsourcing companies, so it is usually the MTO model, some companies combine the MTS or ETO or ATO model. Very few and very few companies operate all the models above.
