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Assemble-to-Order
Production Planning

Assemble-to-Order (ATO)

Assemble-to-Order

Strategy that stocks standard modules or components and performs final assembly after customer order receipt.

Examples

  1. 01Under assemble-to-order, the plant keeps 8 motor sizes and 5 gearbox types in stock and assembles the drive only when the order arrives.
  2. 02Before accepting a rush order, the planner checks that the needed modules are in stock, because assemble-to-order only works if they are.
  3. 03With assemble-to-order, customer delivery time drops from 6 weeks to 5 days, while finished-goods stock is almost zero.

Related terms

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