Difference Between Strategies

Hi friends
   what is the difference between the make-to-order &  Engineer-to-Order. Pl explain. Where we will use the strategy engineer-to-order.
regards
ssp

Hi,
Both MTO and ETO are similar, there is a small difference.
In order to reduce inventory, many firms have designed their production system to produce a product only after it is ordered. Such scenario is called Make-To-Order (MTO).
The engineer-to-order (ETO) supports the requirements of companies that manufacture products based on their customers' unique engineering designs. Companies building ETO products require special processes for estimates, purchasing materials, engineering changes, cost allocation and tracking, and ongoing work with customers.
MTO can be used by any company which needs to start production after getting order, ETO also same, but used in industries where special processes/engineer designs required.
I hope I have answered your question.

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