Inventory · Odoo glossary

Make to Order (MTO)

Understand make to order and Odoo’s Replenish on Order route, including purchase and manufacturing demand, sales-order links and differences from stock rules.

Definition

In general ERP practice

Make to order (MTO) is a fulfilment strategy in which production is initiated for a confirmed customer order rather than for a stock forecast. It can suit products whose configuration or demand makes holding finished inventory undesirable.

The strategy links a delivery promise to the time required to obtain components, manufacture the item and ship it. It does not, by itself, mean that a product is custom designed.

In Odoo

Odoo uses the label Replenish on Order (MTO) for a route that can trigger purchasing as well as manufacturing. Confirming a sales order creates an RFQ for a purchased product or a manufacturing order for a manufactured one, linked to the source demand.

For Odoo 19, the documented route generates replenishment even when enough stock is already available. Purchased items need a vendor configuration; manufactured items need a BoM. Cancelled replenishment documents are not automatically replaced, and cancellation of the sales order does not automatically cancel its RFQ or manufacturing order.

Two replenishment paths

  1. Purchased item

    Customer order → supplier request → receipt → delivery.

  2. Manufactured item

    Customer order → manufacturing order → production → delivery.

When stock rules are different

If the goal is to maintain a common pool of stock, a min/max reordering rule may better express that policy. If the goal is to trace supply back to a particular demand, MTO addresses a different requirement. Review the operational consequences before choosing the route.