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
Purchased item
Customer order → supplier request → receipt → delivery.
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.
Official Odoo documentation
The Odoo-specific explanation above is based on the documentation for Odoo 19. Features and workflows can differ in other versions.
Related glossary terms
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